News 
UK: New Opportunity for Tax-Free Remittances from 6 April 2012
15 Feb, 2012
A reminder that legislation will take effect from 6 April 2012 to allow non-UK domiciliaries to remit funds from abroad tax-free providing they are invested in UK commercial businesses. Up until now, income and gains remitted to the UK in this way from overseas have been chargeable to UK tax.
A UK commercial business is broadly defined in the draft a a UK private company undertaking a business taxable as a trade in the UK (or a holding company of such ventures). Trades include most active commercial activities, including property development but excluding property and other passive investment activities.
The investor will have a period of 45 days from the day of remitting the funds to invest it in a qualifying venture. There is also a “grace period” of 45 days to re-export the cash without a charge to tax should the investment be sold or otherwise cease to qualify.
This is an excellent opportunity for non-doms to bring in cash which to date they have been forced to keep offshore. The rules are complex, however, so full tax advice should be taken before such remittances are made.