GLOSSARY

Award Winning
London-Based
Immigration Tax Advisors


ATED Annual Tax on Enveloped Dwellings, is an annual tax payable mainly by companies that own UK residential property valued at more than £500k 

BIR Business Investment Relief, gives relief from tax under the remittance basis for non-UK domiciled taxpayers resident in the UK who brings funds to the UK to make qualifying investments. Income or gains are not treated as remitted where the funds are invested within 45 days of being brought to the UK.

Capital Distribution Any distribution from a company which is not treated as income for income tax purposes.

CGT Capital Gains Tax, is a tax levied on profit from the sale of property or an investment.

Clean Capital Refers to the income or profits accrued before you become a tax resident in the UK under the Statutory Residence Tax.

Cleansing Mixed Funds One can cleanse mixed funds by transferring money from one offshore account to another, only if you are a UK non-domiciled individual.

Deemed Domicile An individual who has certain links to the UK, but isn’t actually domiciled in the UK.

Disposable Income It’s the income after taxation or social security charges, which is available to be spent or saved as one wishes.

Domicile of Choice You have settled permanently in a country which you now consider domiciled.

Domicile of Dependence Is the domicile that the law gives to an individual due to the  individuals lack of legal capacity and legal dependence upon another person.

Domicile of Origin The country that your father considered his permanent home at the time of  your birth.

DTT Defines the maximum rate of withholding tax.

Fraud Investigation Tax Is the special unit within the anti-fraud office for the prosecution of systematic and organised duty of tax evasion.

HMRC Her/his Majesty’s Revenue and Customs, the government department responsible for assessing and collecting taxes. 

IHT Inheritance tax.

Income Tax Is a tax you pay after earnings.

LLP Limited Liability Partnership, is a partnership in which some or all partners have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner’s misconduct or negligence.

Long-term UK Residents You maybe able to apply for indefinite leave to remain if you’ve been in the UK legally for more than 10 consecutive years.

Mixed Fund Is when the same fund contains more than one type of income.

National Insurance Is the system of compulsory payments by employees and employers to provide state assistance for people who are sick, unemployed or retired.

Non-Resident A person who resides in one region or jurisdiction whilst maintaining interests in another country. In our case you live in the UK most of the time but also have a place in Russia.

NIC  National Insurance Contribution, are taxes paid by British employees and employers to fund government benefits programs, including state pensions. The contributions are made through payroll deductions. The NIC deduction works much like the FICA withholding system in the U.S. (FICA stands for Federal Insurance Contributions Act.) 

NRLS (Non-Resident Landlord Scheme) Is a scheme to tax UK rental income of persons who have a usual place of abode outside the UK.

Non-Domiciled (non-doms) Individuals A person living in the UK who is considered under British law to be domiciled in another country.

NRCGT Non-Resident Capital Gains Tax imposes a UK tax charge where non-UK residents dispose of UK land and property. The latest version of the regime applies to disposals from 6 April 2019 onwards. 

OWR Overseas Workday Relief, allows non-domiciled individuals, who have recently moved to the UK, to not be taxed on the portion of their employment income that relates to their non-UK workdays. The main points to note: The relief is available for the first three tax years of residence.

P60  Is issued at the end of each tax year. P60 contains exact information about how much you have earned PAYE and NIC’s you have paid during the specific year. 

P11D Is a form that gives HMRC information about certain benefits you’ve received from your employer, apart from your salary. P11D’s must be filed out every year with HMRC by 6th July following the end of the tax year. 

PAYE When you’re an employee, you normally pay tax through PAYE. Every time your salary gets paid in, your employer then deducts money from three things: Income Tax (IT), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) and the deducted amount goes to the Revenue.

Permanent Establishment (PE) it determines if the company is earning enough in another territory to create a taxable presence in that area from a corporate ta presence.

Private Residence Relief (PRR) Automatically applies a Capital Gains Tax when you sell a property.

RBC Remittance Basis Charge, is a tax treatment where non-UK income and gains are taxed if and only if they are brought in and enjoyed in the UK. 

Record Keeping The act of keeping track of the history if a person’s or organisation’s activities, generally by creating and storing consistent, formal records.

Remittance A sum of money sent in payment or as a gift.

Remittance Basis An alternative tax treatment that is available to individuals who are resident but not domiciled in the UK and have foreign income and gains.

SDLT – Stamp Duty Land Tax is when you purchase a property or land in England and Northern Ireland that’s over a certain value.

Self-Assessment Tax Return Is a system HMRC uses to collect income tax. Tax is usually subtracted from wages and pensions.

Statutory Residence Test The test allows you to work out your residence status for the year.