Non-working spouses exemption
The measure
A relaxation is to be introduced in respect of an exemption to the remittance basis rules generally used by 'non-working spouses'. This change improves the UK filing exemption given to 'non-working spouses' who have unremitted foreign income and gains in excess of £2,000 but receive no UK taxable income. The Government's aim is that they should not be required to file returns showing a nil liability, until they have been resident in six or more of the previous nine years. It was pointed out that the exemption would be lost where the spouse received any UK source income at all, even small amounts of interest credited to a joint current account with their partner. The Government now accepts that up to £100 of UK interest income taxed at source may be disregarded in applying this filing exemption.
Who will be affected?
Non-domiciled UK residents who are dependants of UK resident earners and do not need to support themselves by remitting foreign income or gains to the UK.
When
The measure is effective from 6 April 2008
.
This apparently minor concession by the Government is important in ensuring that the filing exemption for 'non-working spouses' works as intended. It applies for 2008/09 and subsequent returns.
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