How we handled a Kensington non-dom's remittance basis for a £26,000 saving
Client A is a non-domiciled Kensington resident with substantial overseas investment income and UK employment income. Their previous adviser had been declaring worldwide income on the arising basis each year without checking whether the remittance basis would be more beneficial, and without structuring overseas accounts to keep clean capital separate from income.
We reviewed their domicile position and overseas income, modelled the arising basis versus the remittance basis (factoring in the remittance basis charge given their years of UK residence), and found the remittance basis was significantly more beneficial because most of the overseas income was not being brought into the UK. We restructured their overseas banking to segregate clean capital, income and gains into separate accounts so future remittances could be made tax-efficiently.