Taking Account

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  • Taking Account

Living Overseas or planning to do so?

July 2011

Proposals are now out for consultation with a view to introducing new rules to determine whether or not you are tax resident in the UK.

They are planned to apply from 6 April 2012 and one of the specific proposals is to treat someone as UK resident if spending at least 45 days in the UK in the tax year concerned unless the person is overseas for full-time work in which case the existing 90 day limit will continue to apply. There are other new rules as well.

What this all means is that compared to the existing rules you are more likely to be regarded as UK tax resident when basically living abroad. That does not always present a problem, as if you are also tax resident in a country which has a full double tax treaty with the UK the provisions of that treaty may well say that you tax residence status in the overseas country will take priority. What it does mean, however, is that a full review needs to be taken in your particular circumstances so that any steps necessary to retain the status quo, or indeed improve the position, can be identified. We will be pleased to do just that on your behalf.

Hilton Sharp & Clarke