Overseas Residence: Taxation:Written question - 222440

Q
(Coventry South)
[N]
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Asked on: 28 January 2015
HM Treasury
Overseas Residence: Taxation
Commons
To ask Mr Chancellor of the Exchequer, how much (a) has been and (b) is expected to be raised by the annual charge for non-domiciled individuals who elect to pay tax on the remittance basis and who have lived in the UK for (i) seven of the last nine years, (ii) 12 of the last 14 years and (iii) 17 of the last 20 years in (A) 2012-13, (B) 2013-14, (C) 2014-15, (D) 2015-16 and (E) 2016-17.
A
Answered by: Mr David Gauke
Answered on: 02 February 2015

The Remittance Basis Charge is for resident non-domiciled individuals who elect to be taxed on the remittance basis. The charge is set at £30,000 for those individuals who had been resident in the UK for at least 7 of the last 9 years and longer.

From the start of the 2012-13 tax year, a new £50,000 charge was also introduced for those individuals who had been resident in the UK for at least 12 of the last 14 years and longer.

The amount of revenue raised by the annual Remittance Basis Charge for non-domiciled individuals in each tax year since 2008-09, rounded to the nearest million, is as follows:

Tax Year

Charge Paid

Revenue Raised

2008-09

£30,000

£162m

2009-10

£30,000

£157m

2010-11

£30,000

£165m

2011-12

£30,000

£167m

2012-13

£30,000 or £50,000 (depending on length of residency)

£226m

The amount of revenue raised by the annual Remittance Basis Charge for non-domiciled individuals in the 2012-13 tax year, broken down by the time they have spent in the UK and rounded to the nearest million, is as follows:

Years Resident

Charge Paid

Amount Raised

7 of the last 9

£30,000

£43m

12 of the last 14

£50,000

£183m

Total

£226m

The figures for the 2013-14 tax year onwards are not yet available.

The expected exchequer impact of the changes to the Remittance Basis Charge announced at Autumn Statement 2014 is set out on page 41 of the policy costings document, available on GOV.UK at the following link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/384071/AS2014_policy_costings_final.pdf

The final exchequer impact is affected by behavioural responses to the policy, as explained in the policy costings document.

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