There are a number of new reliefs introduced by Parliament that are going unnoticed due to a lack of awareness and understanding of the benefits. None more so than Business Investment Relief, introduced in the Finance Act 2012, which allows UK resident non-UK domiciled persons to remit overseas income and gains to the UK tax-free in respect of certain qualifying business investments.
The relief is potentially very valuable commercially in allowing the person to utilise offshore resources which have been ring-fenced from remittance. Even more interesting is that by investing in an EIS qualifying company, the person is able to benefit from the Enterprise Investment and Business Investment Reliefs.
This allows “non-dom” investors to utilise inactive offshore capital to invest in UK enterprise and benefit from a number of tax reliefs, including 30% income tax relief on UK earned income.
This is a good example to show that Britain is open for business.