Hi,
I'm a UK resident for the past 15 years. I'm non-domiciled but in the last tax year I have unremitted overseas income of more than 2,000. Hence according to the new law I'm supposed to pay UK tax on them (I'm not using the remittance basis). However UK also have double taxation agreement with my country. Does one law overide the other?
If I have to pay tax on my unremitted overseas income, how much of it will be taxed? Is it the whole amount, or only the amount above the 2,000 threshold?
When calculating tax for my unremitted overseas income, is it added to my overall income, or is it taxed separately? Hence if I haven't used up my personal allowance (6,475 in the last financial year), can I deduct it from my overseas income?
Thanks in advance!
TG