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View all peoplePublished by Tom Boniface on 30 October 2024
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The announcement of the FIG regime will be no surprise to those who closely followed the Spring Budget in March. On review of the detailed measures, they are as one could have expected at the time. With this detail we now know how they are intended to work.
As expected, the remittance basis regime will be abolished from 6 April 2025 and will be replaced by the new Foreign Income & Gains Regime (FIG). This will mean the 2024/25 tax year will be the last one for which taxpayers can claim the remittance basis. After this, they will either have eligibility to make a claim under the FIG regime or will be taxed on their worldwide income and gains.
It appears as though making a claim to be taxed on the FIG regime will not be as simple as ticking a box on a Tax Return. Whilst a claim does need to be made through the Self Assessment Tax Return by the 31 January following the usual filing deadline, there will need to be additional work in preparing the claim.
Individuals will need to quantify and state the amount of income and gains for which relief is being claimed and state this on the return. Taxpayers and advisers will need to work together to ensure these amounts are correct, so they can be brought to the UK without further tax.
These new rules provide qualifying individuals (both people who have never lived in the UK and those people returning to the UK) opportunity to create tax efficient funds in their opening years. However, due to the specifics of the claim, the taxpayers will still be required to obtains documents stating the amounts and share with their advisers to ensure the claims are correct.
Whilst there will be some simplicity compared to the remittance basis regime, it will still have hidden complications.
Following the Autumn Budget 2024, our panel of experts examined the announcements made by The Chancellor, discussing what these changes mean for you. They also answered questions from our live audience. This webinar is now available to watch on demand here.
Alternatively, if you would like any further information or guidance on this topic, get in touch with your usual Kreston Reeves contact or contact us here.
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