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Taxation: Overseas Residence

Volume 464: debated on Tuesday 9 October 2007

To ask the Chancellor of the Exchequer if he will update the information contained in paragraphs 2.14 and 2.15 of the April 2003 background paper on reviewing residence and domicile rules in individual taxation for the most recent date for which the information is available. (145041)

It is not possible to update these figures on a directly comparable basis due to changes in the methodology applied since the publication of the background paper. Specifically, whereas the figures set out in the background paper were based on a 10 per cent. sample of the self-assessment system, current data draws on all available self-assessment returns.

On that basis, data drawn from the 2005-06 self-assessment returns show that some 143,000 have a residence or domicile status which would enable them to benefit from the remittance basis of taxation. Of these, some 114,000 are non-domiciled residents, with the remainder being resident but not ordinarily resident.

The most recent analysis suggests that around 83,000 individuals completed an employment schedule with UK employment income of about £9.7 billion, giving an average annual employment income of just under £120,000. A smaller subset of 17,000 also returned foreign earnings totalling £900 million which were not remitted to the UK and therefore not liable to tax, giving an average foreign earnings figure of just over £50,000.

As the data contained in paragraph 2.15 of the background paper was the result of a one-off analytical exercise which has not been repeated, an update is therefore not available.