United Kingdom: Budget Legislation Promulgated with Royal Assent
The U.K. Finance Bill completed its stages through the House of Lords and received Royal Assent on 17 July 2012, thereby becoming the Finance Act 2012.1 Some of the important measures affecting individuals and their employers are highlighted below.
• A new £50,000 Remittance Basis Charge (RBC) for non-U.K.-domiciled individuals who have been resident in the U.K. for 12 or more of the 14 tax years immediately preceding the year of claim and wish to claim the remittance basis of taxation if their unremitted foreign income and foreign capital gains is £2,000 or more.
• A simplification of the rules relating to nominated income for the purpose of the RBC.
• Removal of the tax charge when non-U.K. domiciles remit foreign income or capital gains to the U.K. for the purpose of commercial investment in U.K. businesses.
• All sums held in an individual’s foreign currency bank account will be removed from the scope of Capital Gains Tax.
• Incorporating into U.K. law the U.K.-Switzerland agreement to combat offshore tax evasion.
• Tax rates:
For tax year 2012-13 | For tax year 2013-14
basic rate is 20% | 20%
higher rate is 40% | 40%
additional rate is 50% | 45%
Source: KPMG