Pixel

Can a Non-Domicile Benefit From EIS

Gary Green
Gary Green
January 2, 2020

Enterprise Investment Schemes aren’t just for full-time UK residents. With a few restrictions, even non-UK domiciled (“non-doms”) individuals can benefit.

The rules surrounding non-domicile status are complicated. HMRC defines your domiciled country as:

Your domicile’s usually the country your father considered his permanent home when you were born. It may have changed if you moved abroad and you do not intend to return.

The implications for paying tax also take into account:

  • How much you earn
  • Whether you work in the UK or abroad
  • If you’re seconded to the UK
  • How much tax you’ve already paid in your official domiciled country.

EIS can offer a way to reduce your tax burden.

How Does It Work?

In order to use an EIS scheme to claim tax relief, you need to have a UK income tax liability to claim against. The usual EIS/SEIS rules apply.

If you sell your shares, and make a profit, you’ll be liable for UK Capital gains tax, but a tax advisor will be able to explain your options for moving the original funds offshore again.

There are also some additional rules to do with your relationship with the company. For example, you can’t receive any “related benefit”. So you (and your family) can’t accept anything beyond a normal salary (so no property, goods or services for example).

Next Steps

The first thing to do is to check that you qualify for EIS non-domicile relief. It might be different if you come to study in the UK for example. You can get plenty of information from the HMRC non-dom page, or you may prefer to get professional advice from a tax advisor.

If you think this applies to you and would like more information, check out our more technical article on EIS for non-doms. We’ve included a couple of handy examples so you can get a feel for how it works.

When you come to complete the paperwork, you'll need to fill in what's called a "compliance statement" (EIS1) and send it to HMRC.

And if you feel you would benefit from some advice from a EIS and SEIS professional, please get in touch and we can arrange a free, no-obligation meeting with you at your office.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
October 13, 2021
What is the Restart Grant and How Do I Apply?

The COVID-19 global pandemic had a detrimental effect on many businesses, but there were some sectors...

September 27, 2021
Choosing The Correct VAT Scheme For Your Business

Choosing the right VAT scheme is an important step for small business owners and can have a considerable...

September 21, 2021
How to Claim EIS Income Tax Relief in 2021

If you need to know how to claim EIS income tax relief and enjoy what is...

September 2, 2021
Recovery Loan Scheme - What Is It and How Do I Apply?

As businesses seek to re-open and recover from the global pandemic, there are various forms of...

August 16, 2021
The Super-Deduction Scheme - How Does It Work?

You may have heard the term 'super-deduction' recently and wondered if you could be affected by...

August 12, 2021
The Tax Benefits of Non-Domiciled Status for UK Residents

Having a Non-Domiciled Status if you reside in the United Kingdom can have great benefits for...

July 9, 2021
Stamp Duty Land Tax (SDLT) Surcharge for Non-UK Residents

Stamp Duty Land Tax (SDLT) rates have changed again for non-residents buying a home in England...

July 7, 2021
How Is Cryptocurrency Taxed & Do I Need to Fill A Self-Assessment?

Cryptocurrency may live online with no government control or borders, but if you are in the...

July 5, 2021
Venture Capital Schemes: Tax Relief Guide For Investors

When it comes to finding out what tax relief is available for investors using a venture...

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2021 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram