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Question 3b i
The remittance basis of taxation:
– Advice is to be provided to three non-UK domiciled individuals.
– Each of the three individuals is more than 18 years old.
Details of the three individuals:
| Name | Lin | Nan | Yu |
|---|---|---|---|
| Tax year in which the individual became UK resident | 2002/03 | 1997/98 | 2002/03 |
| Tax year in which the individual ceased to be UK resident | Still resident | 2011/12 | Still resident |
| Whether or not the individual is ordinarily resident in the UK | Yes | No | No |
| Overseas income and gains for the tax year 2012/13 | £39,200 | £68,300 | £130,700 |
| Overseas income and gains remitted to the UK for the tax year 2012/13 | £38,500 | Nil | £1,400 |
Required:
(i) In respect of each of the three individuals for the tax year 2012/13:
(1) explain whether or not the remittance basis is available;
(2) on the assumption that the remittance basis is available to ALL three individuals, state, with reasons, the remittance basis charge (if any) that they would have to pay in order for their overseas income and gains to be taxed on the remittance basis.
The following mark allocation is provided as guidance for this requirement:
(1) 3 marks
(2) 4 marks
(7 marks)