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Already living or working abroad

HM Revenue & Customs (HMRC) are now looking more closely at claims for non-residence. Following on from the Gaines-Cooper tax case we have already seen them move away from not counting the days of arrival and departure, to the counting of midnights spent in the UK when considering whether the 90 day average and 182 day annual visit limitations have been broken. The number of occasions an individual visits the UK during the year is also now a factor.

However, it is not just about counting days. You will need to demonstrate that you have left the UK in the first place in order to benefit from the income tax advantages. There are different rules for those who leave the UK for work purposes, compared to those who leave for other reasons. Even then there are a separate set of rules for capital gains tax exemption.

Retaining accommodation for your use in the UK, your immediate family remaining in the UK and performing employment duties in the UK can also affect your non-residence claim.

It is therefore recommended that you take an independent review of your circumstances to ensure you have a justifiable case, rather than do nothing only to discover some years later that HMRC have decided to challenge your claim, which could result in arrears of back years' tax, interest and penalties.

I can undertake a review of your circumstances and provide you with a personal written report on your qualification for non-residence status and the UK tax implications of this. I will also offer advice on how your claim can be strengthened to improve your situation, as necessary.

Leaving or returning to the UK

If you are thinking of leaving the UK to live, work or retire abroad, or are thinking about returning to the UK or arriving here for the first time after spending a period overseas, it is important to ensure you do the right things to protect your non-residence claim. You should also consider arranging your financial affairs correctly, taking advantage of your status to limit your UK tax liabilities.

Departure from the UK  

I can undertake a review of your circumstances and provide you with a personal written report on your qualification for non-residence status and the UK tax implications of this. I will also offer advice on how your claim can be strengthened to improve your situation, as necessary. In addition, I will prepare and submit your non-residence claim to HM Revenue & Customs (HMRC) and obtain any tax refund that may be due to you up to the date of your departure from the UK.  

Following on, you may wish to use my annual self assessment tax return preparation service, initially for the year of departure, as this will be on a split tax year basis, to ensure that no more tax than is necessary is deducted from your income. I will be delighted to continue to prepare your tax returns, letting accounts etc on an annual basis thereafter.

Returning Permanently to the UK  

I can undertake  a review of your circumstances and provide you with a personal written report on matters to consider leading up to your return to the UK in order to minimise your exposure to UK income and capital gains tax. In addition, I will prepare and submit your notification to HM Revenue and Customs (HMRC) to advise them of your return to the UK. I will also obtain your correct Pay As You Earn (PAYE) code number to operate against your employment/pension or register your self employment status, as necessary, making your reintroduction into the UK tax system as smooth as possible.  

Following on, you may wish to use my annual self assessment tax return preparation service, initially for the year of return to the UK, which will be on a split tax year basis, to ensure that no more tax than  necessary is deducted from your income and gains. I will be delighted to continue to prepare your tax returns etc on an annual basis thereafter.