Our Barristers deal with all aspects of personal taxation, and have particular expertise with high-net-worth individuals, foreign domiciles and non-residents, remuneration planning and asset protection.
Income Tax Reliefs
There is a great deal more utility for our clients in double tax treaties. They offer significant relief in relation to income tax, including employment income, pensions income, royalties and other intellectual property income, interest and dividends.
Generally, the double tax agreement will provide for a credit for foreign tax paid (a foreign tax credit) but on rare occasions, a complete exemption in either the UK or other home country can be obtained. This will depend on the terms of the original treaty. The income reliefs available are particularly important from those whose home country is the United States since the United States still taxes its citizens on their worldwide income, and they are required to pay taxes there whether resident or not. Claiming the proper reliefs in such a situation is essential.
Negotiating when income tax reliefs are available in relation to foreign income can be fraught. It is something on which you should seek expert advice as early as possible to maximise the possibility of obtaining relief.
Capital Gains Tax Reliefs
Capital gains tax relief has become particularly important for those who are dual resident since the UK domestic law changed so that capital gains of non-residents on UK situate real property became chargeable and, similarly, capital gains of residents on non-UK situate real property also became subject to tax (indeed these domestic law changes were the catalyst for the UK to amend and ultimately replace its double taxation agreements with the Crown Dependencies of Jersey, Guernsey and the Isle of Man).
Additionally, however, it can help with gains on other sorts of property that are chargeable in more than one jurisdiction – for example because the taxpayer is resident in one jurisdiction but the gain arises on property situate in another jurisdiction.