Tax tip: Business investment relief

Business investment relief (BIR) enables non-doms to bring their foreign income or gains to the UK to make a qualifying investment without triggering a taxable remittance. While we are facing a new foreign income and gains regime BIR will still be in point for remittance basis monies.

The investment can be in the form of shares or a loan to a qualifying company. It might surprise some that an investment in a property investment company qualifies for this purpose as does a company wholly owned by the individual. In addition BIR can be used with EIS or SEIS investments.

There are pitfalls for the unwary. For example monies brought onshore must be invested within 45 days. If a BIR investment is sold or loan repaid the proceeds must be taken offshore again or used to make another qualifying investment within 45 days. There are other...