British Expat Tax Advice If you are planning to live or work overseas, there are
certain British tax issues you must consider. Your change of residency from the
UK to overseas will impact your tax status. If you don't understand your tax position
on your income and assets in another country, you may be making unnecessary
payments.
At the Bus Employees
Friendly Society in Reigate, this month's blog is offering British expat
tax advice. For more information, call us on 01737
226 060 .
Statutory Residence Rules The statutory residence rules determine your residency.
Ensuring your residency status is correct is important, otherwise you may end
up paying more than you need to. To find out whether you are a UK resident or
non-resident, there is the Statutory
Residence Test .
This helps you work out:
How any UK investment income is treated The implications of selling UK assets Inheritance Tax & Capital Gains Tax rules Personal Allowance If you are classed as a UK tax resident, or receive an
income from the UK, you will often receive a tax-free personal allowance. The
2020/21 tax-free personal allowance is £12,570. You will be taxed on anything
you earn above that.
Non-residents living in a country that the UK has a
double tax treaty with often restricts the UK's rights to taxation. This
ensures you do not pay more than once.
Capital Gains Tax Since April 2015, both British expats and non-residents who
are selling a property in Britain now owe capital gains tax on any profit made.
This previously did not apply to non-residents.
Informing HMRC If you decide to leave the UK, you must fill out a P85
form to inform HRMC. However, you only need to fill this out if you do not file
a UK tax return. You will need to file a UK tax return for the year of your
departure.
It is worth noting that your tax liability does not
necessarily cease on the day you depart. Nor does your duty to continue filing
tax returns. Even if you are a non-resident, any income you earn in the UK is still
taxable.
Find Out More For more information, please don't hesitate to contact the
Bus Employees Friendly Society in Reigate. We are more than happy to answer
your British expat tax queries. Call us today on 01737
226 060 . Alternatively, fill out our online contact form and we will be in
touch.
