Thursday, 10 December 2015

Changes to business investment relief: a sop to non-doms?

Business investment relief (BIR) has been a feature of the UK tax system since April 2012 and it is unusual, being the only exception to the remittance basis of taxation that is ‘purpose-specific’.  BIR allows UK resident non-doms to bring into the UK untaxed foreign income and foreign gains without making a taxable remittance of those funds.   The purpose of the relief is to encourage foreign investment into UK commercial enterprise.  However, as reliefs go, it is relatively unloved.  Its uptake since inception has been limited but, thanks to the Autumn Statement 2015, it is back in the spotlight again as the Government announced a consultation on altering BIR to increase its use, with the aim of increasing investment into UK businesses.