Where you choose to live in the world can have a significant impact on your UK tax liability, especially if you have any non-UK income or assets. Once you have ceased to be a UK tax resident, you become liable for expatriates’ tax. In 2013, the UK government brought in a new statutory residence test (SRT) to assess an individual’s tax status. Since then, in theory, taxpayers have been able to assess their own residency status in a more straightforward way, although the reality is that it still remains a complicated matter.
The red tape involved in expatriate tax planning can be complex. For a start, the SRT itself comes in three parts, comprising an automatic overseas test, an automatic UK test and a sufficient ties test (e.g. family, accommodation or work).
You begin with the automatic overseas test and move on to the other two if the requirements to be considered an expatriate are not met straight away. A detailed process then ensures where an individual’s expatriate tax status is analysed, along with the number of days spent overseas and in the UK, as well as previous work patterns, tax records and sufficient ties. Separate rules apply in the tax year of the individual’s death.
Our expert team is ready to help you negotiate your way through the SRT and subsequent expatriate tax planning. We can help you at any stage of the expatriation process; whether you’re considering leaving the UK to live or work elsewhere, have already made the move or would like to return to live or work the UK and are concerned about your tax obligations.
Whatever your Expatriate tax enquiry may be, contact us today by completing the enquiry form on this page. We offer all potential clients a free, no obligation initial consultation so that we can outline our services and find out how we can help with your accountancy or tax planning needs.