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Ex-Pats

Ex-Pats

When working or moving abroad, taxation can be very complicated.
Careful planning is required to ensure you are following the most effective form of tax planning for your circumstances and proof has to be given to HMRC about your residency status for tax purposes.

We provide specialist tax advice for Ex-Pats, explaining the tax implications regarding income tax, capital gains tax and inheritance tax. This applies to both long and short periods out of the UK.

Ex-Pats Tax Advice & Services

- advice on your residency status during your time abroad & how this will affect your tax status
- advice on letting your UK property whilst you are outside the UK (including HMRC's non-resident landlord scheme)
- advice with ongoing UK tax & NIC obligations
- Tax Return preparation & online filing
- dealing with your UK affairs whilst you are out of the UK (if required)


Contact us if you would like help & advice about working or moving abroad, or if you would like us to complete your Tax Return for you.


When to complete a Tax Return whilst working abroad

- Working for a UK company overseas - you may continue to pay UK tax under PAYE, so you need to complete a Self Assessment Tax Return to claim up to 100% of your tax back (as long as you qualify for being not resident and not ordinarily resident).

- Working for a non-UK company overseas - you must complete a Tax Return only if you remain resident in the UK for tax purposes.

- Working for a non-UK company in a country that has a Double Taxation Agreement - complete a Tax Return only if you remain resident in the UK for tax purposes. (You could end up paying some UK tax).

Leaving the UK to work abroad as an employee

If you are leaving the UK to work abroad full-time, you will only become not resident and not ordinarily resident from the day after the day of your departure, as long as you satisfy the following conditions:

  • you are leaving to work abroad under a contract of employment for at least a whole tax year (6th April to 5th April the following year)

  • you have physically left the UK to begin your employment abroad (e.g. not left to have a holiday before you begin your employment)

  • you will be absent from the UK for a least a whole tax year

  • your visits for the UK after you have left will total less than 183 days in any tax year, and average less than 91 days in tax year (taken over the period of absence up to a maximum of four years).


If you satisfy all these conditions, you will not pay UK tax on any employment duties which you carry out wholly abroad.

If you do not satisfy these conditions, you will remain resident and ordinarily resident in the UK and liable to UK tax on all UK income.

If you are not resident in the UK, you will still pay UK tax on any income or profits that you carry out wholly in the UK as well as any pensions & investment income you receive from UK sources.
You might be able to claim under a Double Taxation Agreement (DTA) for your UK earnings or pensions (including taxable UK Social Security benefits) to be exempt from UK tax.
If you rent out your UK property, you need to make an application to receive UK rental income without deduction of UK tax.


Definitions

UK resident - if you are in the UK for 183 days or more in a tax year, you will be resident in the UK for that tax year. If you are in the UK for fewer than 183 days in a tax year, you may still be UK resident depending on how often and how long you are in the UK, the purpose and pattern of your presence and your connections to the UK - these might include the location of your family, your property, your work life and your social connections. You can be resident in more than one country at the same time.

Ordinarily resident - generally speaking, you are 'ordinarily resident' in the country where, for the time being, it is usual for you to live. You can be ordinarily resident in 2 countries.

Not ordinarily resident - you do not have a 'settled purpose' whilst in the UK.

Domiciled - broadly speaking, your domicile is the country that is your 'real' or permanent home, which you have left and intend to return to live in at some point in the future. Whether or not you are domiciled in the UK is generally relevant only if you have foreign income and/or gains during the tax year.


Require more information?

If you would like more information, please contact us.


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