Whistle blown on remittances basis for non-domiciles
Tuesday, 16 October 2007
Scottish Life International has welcomed the Chancellor's proposals to amend the taxation regime applying to resident non-domiciles as announced in the Pre-Budget Report. The proposals effectively mean the end of the centuries-old remittances basis of taxation for many long-term residents. There would be a £30,000 'cap' to the taxable foreign income of such individuals.
Simon Pack, International Sales Director, commented:
"The Government must be congratulated on tackling the Gordian knot that is the UK tax treatment of the foreign income of resident non-domiciles.
"The proposal to end the remittances basis of taxation for long-term residents should mean that the offshore bond will come to be more frequently used as an investment vehicle by such individuals, particularly those with non-UK investment income of less than £30,000 per annum.
"I'm also glad that the proposals won't affect the import of foreign stars by my beloved Chelsea. The retention of the old regime for those non-domiciles who will be UK resident for less than seven years will help attract stars of the quality of Kaka."
– ENDS –
For further information please contact:
pressoffice@sli.co.im / 0131 456 6031 or
Scottish Life International
Simon Pack
International Sales Director
Mobile: 01438 833 606
Email: simon.pack@sli.co.im
Notes to Editors:
Scottish Life International was launched in 1996 and is now part of the Royal London Group. The company has grown rapidly in size and now has funds under management in excess of £767m / $1.14bn from investors in the UK and around the world (as at 30 June 2007). Scottish Life International is based in the Isle of Man, where it is supervised by the Isle of Man Government Insurance and Pensions Authority.
Scottish Life International is a member of the Association of International Life Offices (AILO) and sponsors IFA Promotion (IFAP), which supports the need for independent financial advice.
Holders of policies issued by Scottish Life International Insurance Company Limited, based in the Isle of Man, will not be protected by the UK Financial Services Compensation Scheme if the company becomes unable to meet its liabilities to them. Policyholders will however be protected by the Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991.
Royal London Group is a specialist financial service provider. Its businesses focus
on those sectors of the market which value premium propositions, operating through
a number of brands:
- Scottish Life - UK pensions market
- Bright Grey - UK protection market
- Scottish Life International - offshore investment markets
- RLAM - fund management
- RLAS - life and pensions administration
Royal London is one of the stronger life and pension companies in the UK and has a particularly strong track record for with profits performance.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £32.7bn / $65.5bn. Group businesses serve around three million customers and employ 2,570 people.(Figures quoted are as at 30 June 2007.)
Issued by Scottish Life International Investment Group Limited, a Royal London company which is authorised and regulated by the Financial Services Authority. Registered in Scotland number 166387. Registered office: 19 St Andrew Square, Edinburgh EH2 1YE.