Tax for non-domiciled resident

mugston

I plan to become a UK resident during the next tax year.

My domicile of birth is Republic of Ireland.

I believe this means I am not liable on tax on foreign income that is not remitted to UK?

My main income will be from capital gains and dividends from VWRL etf.

I imagine that some capital gains and dividends from VWRL are from UK, and so are not classified as foreign income?
Will my discount broker break this down clearly for me?

Under current rules, once I simply don’t send any foreign income to my UK account, it is tax free?

DullGreyGuy

You're aware they are abolishing the non-domiciled tax breaks? 

UK and Ireland have a convention to avoid double taxation on income and capital gains tax. So assuming you are paying Irish taxes on the gains these will be offset from your UK liability and given Irish taxes are higher on CGT then you wouldn't be paying UK tax on them. 

born_again

You will need to make sure your UK bank knows about income from other countries.

mugston

@DullGreyGuy - Yes I am aware, but it's not until 2025, and even then it provides non-dom tax breaks for the first 4 years of residency, and I only plan to take up residence from the next tax year (2024-25).

Why would I be paying Irish taxes on the foreign gains if I will be a UK tax resident?

Jeremy535897

This is a complex question. The first issue is whether you retain your Irish domicile of origin, or acquire an English domicile of choice. Broadly, this is where you have your permanent home.
Assuming you don't change your domicile for tax purposes, you have to avoid remitting non-UK income and gains in 2024/25. As you say, assuming the proposed new legislation is enacted and survives, you will not pay tax on non-UK income and gains arising in the early years of residence under the new regime. However, income and gains arising in 2024/25 and remitted here will be subject to UK tax, albeit there is a 12% rate for remittances after 5 April 2025 for a certain period.
Your problem is that you look at the fund rather than its underlying investments, and there are also complex rules where UK and overseas income and gains are mixed up together. There may also be the offshore income gain rules to consider.
There is some guidance here (and in the attached pdf):
https://www.vanguardinvestor.co.uk/investing-explained/general-account-tax-information
Don't rely on any such organisation getting things right so far as tax reporting goes.