Tax planning and Tax Return Compliance Services for those Leaving the UK.

It is important on your move overseas that you understand whether you will meet the rules to be regarded as non-resident for UK tax purposes under the Statutory Residence Test introduced in April 2013. Seeking professional advice means you won’t end up paying more tax than you should.

Residence

The Statutory Residence Test has three parts:

Part A – factors that will conclusively determine when someone is not resident for UK tax purposes.

Part B – factors that will conclusively determine when someone is resident for UK tax purposes.

Part C – this will apply only to those with more complex affairs who cannot conclusively determine their status under Part A and Part B, using various connections with the UK to measure the position. These connections, known as “UK ties”, are then referenced against the amount of time spent in the UK to determine whether UK tax residence exists.

Under certain circumstances you can “split” a UK tax year and have a period of residence and a period of non-residence within the year. The rules are complex and we would suggest taking advice well in advance of you leaving the UK to ensure you plan your tax residence status in the most tax efficient manner.

We can help you with the following areas:

  • Ensuring you become non-resident under the Statutory Residence Test rules on leaving the UK.
  • Advising on the “temporary non-residence rules” which will still tax certain capital gains/company dividends realised during a period of non-residence.
  • Registering with HM Revenue and Customs as a “Non-resident Landlord” if you are to receive rental income from UK property.
  • Registering for UK “Self Assessment” Tax Return filing.
  • Preparation of annual UK Tax Returns and filing these on-line with HMRC.
  • Determining whether UK National Insurance payments are due and obtaining social security certificates of exemption.
  • Determining the UK tax treatment of participation in non-UK pension schemes.

Please click here to download our Tax Residence Guide which takes you through the issues you need to understand Leaving the UK in more detail.

For professional advice about moving abroad please contact Tax Innovations on 01962 856 990 or customerservice@taxinnovations.com.

For an initial consultation please call us on 01962 856 990 or visit our contact page.