Residence Rules

In a global economy many people are choosing to work overseas, whether leaving the UK for employment in another country, or coming from overseas to work in the UK.

Am I a UK or Non-UK Tax Resident?

The tax treatment of income can be a complex area and it is advisable to seek specialist advice as the rules regarding residence in and out of the UK have altered radically in recent years. HMRC have released a guidance note called RDR3 – statutory residence test, which will seek to define whether an individual is resident or non-resident in the UK. This must also be considered in tandem with relevant Double Tax Agreements.

Our experts can guide you through the rules to establish your position and help you plan to keep your tax bills to the minimum.

UK Residents Going Abroad:

There are many things to consider when planning such a move, such as:

• Reviewing contracts of employment/self-employment

• The changing impact of Income Tax on your earnings and investment income

• The changing impact of Capital Gains Tax on your assets

• Planning dates of departure from and re-entry into the UK

• Calculating allowable days in the UK including working days

If you are leaving the UK to become non-resident our tax specialists can help you make sure everything is organised to minimise tax and to avoid pitfalls and advise on any required paperwork.

Overseas Nationals Coming to the UK:

It is no surprise that the UK tax authorities will be interested in your financial affairs.

Areas to Consider Are:

• Establishing your UK tax status

• The taxation of income and capital gains while you are here

• Whether to use an offshore company to hold UK assets

• Inheritance tax rules on UK and overseas assets

• Help with will writing and related tax planning

Our experts are familiar with all these issues and are happy to welcome you and help you plan for a new tax regime.

“This is a notoriously difficult area, especially since the rules are not clearly defined in tax legislation. This makes it all the more important that you consult us before you act”

To speak to one of our personal tax experts please contact us