CTA IND 34 - 41

Question 1

In establishing a new domicile of choice, HMRC will look at:

Answer 1

1. Intentions
2. Permanent residence
3. Business interests
4. Social/ family
5. Property ownership
6. form of any will made

Question 2

FDR for Income tax is someone who:

Answer 2

1. Born in UK
2. UK domicile of origin
3. Resident in the UK for the tax year

Question 3

A long-term resident is an individual who has been UK resident for

Answer 3

15 out of the previous 20 tax years

*split years counts as year of residence

Question 4

Remittance basis charge if 7 out of 9 previous tax years

Answer 4

£30,000

Question 5

Remittance basis charge if 12 out of 14 previous tax years

Answer 5

£60,000

Question 6

How does overseas workday relief work? (OWR)

Answer 6

Apportions earning between UK and non-UK duties based on the number of UK and overseas workdays in the tax year.

Earning attributable to non-UK duties are taxable on a remittance basis

Question 7

Who would be eligible for OWR?

Answer 7

An employee in any of the three tax years immediately following three consecutive years of non-residence

Question 8

What is Unilateral relief (double tax relief) and how much is the tax credit?

Answer 8

It allows for foreign tax to be given as a tax credit in the IT computation.

THE LOWER OF:
1. Overseas tax suffered
2. UK tax liability on THAT income

*cannot create negative liability, only to NIL