How much must an individual pay if they have been a UK resident for 7 of the past 9 years under the remittance basis?

How much must an individual pay if they have been a UK resident for 7 of the past 9 years under the remittance basis?

• A. £10,000
• B. £30,000
• C. £50,000
• D. £60,000

Answer: (B)

An individual who has been a UK resident for 7 of the past 9 years and chooses to be taxed under the remittance basis must pay an annual charge to access this taxation method. The applicable charge for an individual in this residency situation is set at £30,000. This remittance basis allows UK residents who are not domiciled in the UK to only be taxed on their UK income and on foreign income and gains that are brought into the UK. However, if they have been a resident for a certain number of years, they must pay a fee to benefit from this system. The amount of £30,000 is specifically established for those who have been UK residents for at least 7 out of the last 9 years, reflecting the policy goal of encouraging long-term residents to contribute to the tax system while still allowing for some flexibility in taxation for non-domiciled individuals.

An individual who has been a UK resident for 7 of the past 9 years and chooses to be taxed under the remittance basis must pay an annual charge to access this taxation method. The applicable charge for an individual in this residency situation is set at £30,000.

This remittance basis allows UK residents who are not domiciled in the UK to only be taxed on their UK income and on foreign income and gains that are brought into the UK. However, if they have been a resident for a certain number of years, they must pay a fee to benefit from this system. The amount of £30,000 is specifically established for those who have been UK residents for at least 7 out of the last 9 years, reflecting the policy goal of encouraging long-term residents to contribute to the tax system while still allowing for some flexibility in taxation for non-domiciled individuals.