We can advise how to become, remain, avoid or cease being UK tax resident. HMRC uses the Statutory Residence Test (SRT), for each tax year, to determine your residency status. This is based on a complex set of factors such as the number of days spent in the UK, employment, accommodation and family ties.
Arrivers – becoming UK Tax Resident
People coming to live in the UK on the Tier 1 Investor or Entrepreneur’s visa are required to be UK tax resident in order to comply with the regulations of their visa. Residency planning needs to start long before arrival in the UK. We can advise on the tax efficient timing of a purchase of UK property before your arrival, including the most efficient vehicle to hold the property. In order to fund your lifestyle you may need to restructure offshore assets and holding companies and set up bank accounts in order to bring in your money tax efficiently.
Foreign domiciled individuals who are UK tax resident may wish to claim the beneficial remittance basis. We can submit your tax return, in which we elect for the remittance basis of taxation.
We can help clients remain tax resident in the UK so that they lose their liability to tax in other countries in which they spend time. We can advise on obtaining a ‘Certificate of Residence’ to claim tax relief abroad. The UK has a wide network of double tax treaties and a well informed decision to deliberately become UK tax resident by invoking the “tie-breaker” clause can ensure that tax is paid at a lower rate in the UK and not in another jurisdiction.
Leavers – breaking UK Tax Residency
Some individuals who visit or work in the UK regularly may wish to make sure that they stay non-UK tax resident in order to avoid a costly UK tax liability. We can help to ensure that this is a possibility.
Effective planning on breaking tax residency prior to departure from the UK can minimise an expat’s tax liability. We can advise on the interaction between UK tax legislation and that of your destination jurisdiction to ensure a seamless move abroad.
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