Many people leave the UK without thinking about their tax residency and domicile position.
Domicile – for inheritance tax
Tax Residency – for income tax
Tax residency cannot be just assumed. You cannot live in Spain and assume you are not still tax resident in the UK because you still file tax returns in the UK. You cannot assume you have spent 183 days in Spain and assume you are no longer tax resident in the UK. In one example, a client was living and working permanently overseas but his wife still lived in the UK in their jointly owned marital home and their children were being educated in the UK. The client involved had a home and bed in the UK and returned for ‘holidays and periodic visits and stayed for too many days and was therefore considered UK tax resident despite only spending a few weeks a year in the UK. This came from new rules in 2013 where HMRC issued a new Statutory Residence Test with 3 levels to test and see if you are:
As you can see from the above both your domicile and tax residency position need to be reviewed early when planning to leave the UK.
Find out about our Leaving the UK Service: Leaving UK
Other useful links:
ESSENTIAL COOKIES ONLY - WE DO NOT TRACK YOU
WE DON'T LIKE BEING TRACKED SO WHY WOULD WE 'SPY' ON YOU?
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