• Income and gains realised by offshore trusts will only be taxed when remitted to the UK, even if these come from UK assets.
• Non resident trustees will have the option to elect for rebasing to market value as at 6 April 2008 of all the assets of the trusts and the underlying companies.
• However, the use of the rebasing election will mean that information concerning the trust may have to be provided to HMRC.
• Complex matching rules will be introduced which does mean that non resident trustees will have to keep appropriate detailed records of all transactions.

• The £30,000 charge should be creditable against foreign tax.
• The unremitted income/gains on which the £30,000 has effectively been paid will not be taxed if and when it is later remitted to the UK.
• Children will not pay the £30,000 charge.
• If the non UK domiciled individual pays the £30,000 direct from an offshore bank account to HMRC by cheque or electronic transfer, it will not be taxed as a remittance.
• Non UK domiciled individuals with unremitted offshore income and gains of under £2,000 will be exempt from £30,000 charge and can retain their personal allowances.

• Consider gifting overseas income to spouses and relatives to their non UK bank accounts.
• Consider switching from income generating investments to capital growth assets offshore.
• Consider payments of accumulated income to beneficiaries from offshore trusts which can then be gifted to relatives.
• Consider rebasing the value of existing capital assets and property before the new regime starts.

• From 6 April 2008, non UK domiciled individuals will have to claim the remittance basis. If you choose not to claim the remittance basis, you will be taxed on worldwide income and gains.
  
• Individuals will have a choice each year as to whether to claim the remittance basis or not. However, if you remit funds to the UK which has arisen in a previous year for which the remittance basis applied in a year in which you have not claimed the remittance basis, you will still be taxed on the remitted funds.
  
• An individual who has been resident in the UK for 7 out of the past 9 years and claims the remittance basis will be liable to an annual charge of £30,000. The annual charge will be payable in addition to any tax due on income and gains remitted to the UK. If you have been resident in the UK since 2001/2002, you will be liable to an annual charge of £30,000 if you wish to claim the remittance basis from 6 April 2008.
  
• If you claim the remittance basis in any year, you will not be entitled to the income tax personal allowance or the capital gains tax annual exemption.
  
• The remittance basis will apply automatically to individuals who have unremitted income and gains in a tax year of less than £1,000.

A number of remittance planning techniques will be closed form 6 April 2008.

• The long accepted practice of mitigating UK tax by remitting income to the UK from an overseas account which has been closed before the year of remittance will now not be possible.
  
• From 6 April 2008, non UK investment income used to purchase an asset outside the UK that is then brought into the UK will be taxed as remittance.
  
• New rules have been introduced to identify remittances from mixed funds and less favourable rules regarding the remittance of capital gains.
  
• Another accepted practice of a UK resident non UK domiciled individual gifting non UK income to a relative outside the UK and for that relative to remit the gift to the UK tax free has been stopped. From 6 April 2008, tax will be charged on the donor of such gifts to connected parties.
  
• Interest on funds borrowed overseas to acquire a UK asset will no longer be able to be serviced out of overseas income without a taxable remittance arising.

• All non UK trusts with UK resident settlors or beneficiaries, including existing trusts, will now need to be reported to HMRC.
  
• If you are the settlor of a non UK trust and you and/or your family including your grandchildren are able to benefit from it, you will be assessed to capital gains tax on an arising basis if the trustees realise a gain on the sale of UK assets. If the trustees realise a gain on the sale of foreign assets, the settlor will be liable to capital gains tax on a remittance basis (if the remittance basis is claimed).
  
• If you are the beneficiary of a trust of which you are not the settlor, you will be liable to capital gains tax if you receive a capital payment from the trust and the trust has previously realised gains which have not been attributed to the settlor or another beneficiary. The capital gains tax is increased by a supplementary charge of 10% per annum (subject to a maximum of 6 years) by reference to the years elapsed between the realisation of the gain and the distribution. At the new capital gains tax rate of 18%, the maximum this rate can be is 28.8%.
  
• The remittance basis does not apply here and you will incur a liability to tax even if you receive the payment outside the UK and irrespective of whether the payment represents gains arising from the sale of a UK or a foreign asset. This change is retrospective as a capital payment made after 5 April 2008 can be matched with gains realised by the trustees since 1998. Likewise, a capital payment made prior to 6 April 2008 but not franked by trust gains can be matched with trust gains arising after 5 April 2008.
  
• Gains realised by a non resident company with less than 5 owners will be attributed to its shareholders pro rata and taxes as they arise in relation to UK assets and on the remittance basis in relation to foreign assets (if the remittance basis is claimed). Any tax paid on the attributed gain is not available as a credit against capital gains tax which the shareholder may eventually pay on remittance of proceeds from the sale of shares in the non resident company.
  
• Where the ultimate owner of a non UK company is a trust then the gain will be attributed to the settlor or matched with capital payments made to beneficiaries.
  
• Although, non domiciled individuals will see an increase in tax on capital gains, it will be at the rate of 18% based on the proposed changes to capital gains tax rate with effect from 6 April 2008.

• If you spend 183 days or more in the UK in any one tax year, you will be resident in the UK. You will also be UK resident if, over a 4 year period, you spend 91 days or more in the UK on average. These rules have not changed.
  
• Currently, only whole days spent in the UK are counted towards establishing residence and days of arrival and departure are generally ignored. From 6 April 2008, these days of arrival and departure will count as a day of UK residence.
  
• An exception will be available to transit passengers travelling via the UK provided they remain airside in the airport terminal.