Accountancy Age has reported that HMRC:
is to roll out funding to Phd students and other research experts as part of a new plan to encourage academics to contribute to tax decision-making and strategy formulation.
Researchers will now be able to pitch their research proposals to HM Revenue & Customs and then bid for financial backing.
'This process will allow a wider network of experts to influence the development of HMRC's evidence base… generally the analytical focus is generated within HMRC based on departmental business objectives and evidence needs. We are now inviting an external audience to initiate research ideas,' HMRC said in a statement.
Maybe I should apply for funding to improve the data available on domicile. 🙂
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I am non-domiciled UK resident and have an income of about £10,000 p/a earned outside the UK from bank deposits, but not brought into the UK. It is not economical to pay £30,000 p/a so I will be opting to pay the UK tax at 40%. Does this mean that I could then without restrictions move my capital (capitalizing any interest earned before 6th of April 2008) into UK after 6th of April 2008 .
Kind Sir. I think that your statements of fact have many facets. The problem is that the income is interest, which as an individual is simple declarable income…. But what if the interest was earned by a company that resided fully out of the UK, and that it did not distribute the income, or it collected it as a qualified pension, or that it went to another organization or person. You would be in most jurisdictions of world wide income evading tax, not avoiding it.
But the unfairness of the tax and the law itself would seem to create open season for astute tax planning. The interest collected would be part of the capital…a simple investment accumulated gain…, before April 2008 date of change…and that the entire amount regardless of the amount accumulated would be all capital after one year of existence. The capital should be openly received as capital(without any consideration of interest)…but you might find that it should come into a company as a loan through an intermediary for a house or business. It would seem that the Revenue will have to promote formerly tax evasion schemes, and call them legal tax avoidance. Friends and out of country relations will become financial managers. Tax advisors in various previously disreputable islands will become trusted tax and corporation advisors. The Veasy family trusts will merge into corporations, and simplicity of tax will end. Saudi Arabia will have no benefit unless you work long enough to be exiled from the UK…and then the capital and interest which you worked hard for will have to be spent, given away, or brought out of the East into the West. London, the center of tax simplicity, will not permit us to fly, live in France, work physically in London, but only telecommute. With prison like living, we will be permitted to be out of remand for 30 days, maybe 90 days with good behaviour, and must carefully watch the port strikes or airport weather because the Revenue will note the travel days.
My conclusion is that you should protect your capital and accumulated interest….create a “chinese wall” with a company, arrange for a relative/friend to manage your assets, AND ask the revenue if this is legal…get their confirmation that former evasion is now smart evasion. It could be the maddness of King George, supported by the George of the Bank.