The tax position of UK resident non-doms has been thrown into further confusion by an open letter from HM Revenue & Customs, the UK’s tax authority which seeks to clarify the position. Although written to calm fears expressed by advisors and other interested parties that planned changes would drive a large number of non-doms away from the UK, the letter has produced a strong reaction from tax experts who say that the position regarding the taxation of offshore trusts has not been clarified and that the assurances are half-hearted. In the letter, HMRC says that those using the remittance basis will not be required to make any additional disclosures about their income and gains arising abroad. So long as they declare their remittances to the UK and pay UK tax on them, they will not be required to disclose information on the source of the remittances. The authority also states that there will be no retrospection in the treatment of trusts and the tax changes will not apply to gains accrued or realised prior to the changes coming into effect. Money brought into the UK to pay the proposed £30,000 flat rate charge will not itself be taxable says the UK tax authority. It also makes clear that under the proposals, it will still be possible to bring art works into the UK for public display without incurring a charge to tax, something that had been pointed out as a possibility under ambiguous drafting of the proposals. HMRC says that it will continue to discuss with the US authorities how the £30,000 charge can become creditable against US tax, an area of concern for many US nationals and their advisors. Commentators are expecting further clarification very soon from the tax authorities.