Non UK resident tax planning
Non UK Resident
Losing your UK resident tax status can be a very good tax break, as generally non residents are exempt from UK tax on overseas income and can avoid UK Capital Gains Tax (CGT) as well.
Generally to qualify as non resident your visits to the UK should not exceed 183 days per year. You must ensure you can demonstrate you are a non resident in order to gain exemption and it’s not always just a matter of counting days spent outside the UK.
There are 3 factors to consider when determining residence status; Residence, Ordinary Residence and Domicile
Residence
This is where you actually reside most of the time. Days spent outside the UK will determine this and you will not be resident if absent in excess of 183 days per year. Overseas earnings whilst non resident will be exempt from UK tax.
Ordinary Residence
This is a stricter test and is determined by your habitual place of residence. To be not ordinarily resident you should not maintain a home in the UK and visits cannot be more than 91 days per year on average. If you are not ordinarily resident you will also qualify for exemption from UK CGT even if the asset disposed of is in the UK.
Domicile
In general your domicile is where you were born or where your father was born (Domicile of origin). It is possible to obtain a domicile of choice by completely cutting all ties with your country of birth and never intending to return.
Ordinary residence and domicile have a major impact on the treatment of overseas income and gains remitted to (brought into) the UK.
At Acklands we can advise on a range of issues regarding a potential move abroad including;
- Reducing exposure to UK income tax, CGT and Inheritance Tax (IHT) on moving overseas
- Planning your exit from the UK
- Dealing with all UK tax reporting prior to departure and whilst non resident
Interested?
Then either:
A. Call Tim O’Keefe for a free consultation to see how we can help on 0117 923 7788
Please note that phones are answered between 8.30am & 5.15pm Monday to Friday
OR
B. Fill in your enquiry below and send it to support@acklands.co.uk
