Business investment relief
Most UK taxpayers are liable to pay UK income tax and capital gains tax on all of their worldwide income and gains as they arise.
However, individuals who are resident but not domiciled in the UK can make a claim to be taxed on the remittance basis instead. This means they are taxed on all of their income and gains arising in the UK, but not on non-UK income and gains that are kept outside of the UK.
Generally, if non-UK income and gains that are subject to the remittance basis are brought into the UK, then a UK tax liability will arise on the remittance. However, in order to stimulate overseas investment in UK business, the government introduced Business Investment Relief (BIR) with effect from 6 April 2012.
This powerful relief provides non-domiciled individuals with an opportunity to use offshore funds for UK investment, without incurring a UK tax charge.