The remittance basis

Non-UK domiciliaries are only liable to income tax on UK source income and on any foreign income brought into or ‘remitted' to the UK .

It is, therefore, sensible wherever possible for such individuals to invest their money abroad, normally in a tax haven so that there is foreign income.

With the judicious use of foreign bank accounts it is possible to periodically capitalise a foreign income so that it may be remitted to the UK tax-free.

Even where investment into the UK is desired it is possible, through the use of offshore funds, to turn UK income into foreign income for the purposes of UK income tax.

Capital Gains Tax works in a similar way in that foreign gains are only taxed if remitted here. These rules can be fairly easily circumvented through the use of an offshore company or an offshore trust.