E6.333A Business investment relief—qualifying investments

E6.333A Business investment relief—qualifying investments

For the latest New Development, see ND.2751.

An exemption is available to encourage UK resident foreign domiciliaries to invest in UK businesses using overseas income and gains, without being treated as having made a remittance. The exemption, referred to as 'business investment relief' (BIR), can be claimed where the qualifying investment occurs on or after 6 April 2012¹.

As per 'The non-dom debate' by Androulla Soteri in Taxation on 25 October 2018, the statistics for the 2015/16 tax year showed that only a mere 500 non-domiciled UK residents contributed £894m of BIR investment. Following a consultation in 2016, Finance (No 2) Act 2017 introduced changes to the BIR regime and generally relaxed the rules to try to encourage further investment into the UK because of the slower than expected initial uptake. The rules apply where the funds are brought into the UK or the investment is made on or after 6 April 2017.

HMRC's guidance on BIR can be found in RDRM34300 and on the GOV.UK website ('Business Investment