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From 6 April 2008 certain restrictions in the way the remittance
basis of taxation applies to investment income and employment income from
the Republic of Ireland are to be removed.
Under current rules individuals who qualify for the remittance basis of
taxation are normally only liable to tax on foreign source income if it is
remitted to the UK. The remittance basis does not, however, apply to
investment income from the Republic of Ireland. In certain circumstances
employment income from Ireland is also taxed on an arising basis when if it
were derived from a country other than UK or Republic of Ireland it would be
taxed on a remittance basis.
The proposed change will therefore benefit UK resident but not domiciled or
not ordinarily resident taxpayers with Irish source investment or employment
income and will ensure that Irish source income is treated in the same
manner as other non UK income.
Our view
This change is to be welcomed as it removes an historical anomaly which
could be deemed to be discriminatory to those with Irish source income
(generally Irish Nationals). |
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