Tax implications for emmigrating but renting out house

bubblesmoney

tbs624 wrote: »

also see here: http://www.allagents.co.uk/

is this website mainly for london. just wondering if this website was of any use and whether to bookmark it. but after feeding in the names of many EAs in my area, i didnt get any feedback from that website on any of them

tbs624

No - if you check out the "About Us"section you'll see that it's intended for the whole of the UK.

Obviously the site is dependent on folk posting their accounts of their dealings (good or bad) with specific Letting/Estate Agents: one of the purposes of posting the link up here was to let people know of another opportunity to highlight the actions (or inactions) of problem firms

Captain_Mainwaring_2

bubblesmoney wrote: »

do a bit of reading on hmrc website about double taxation agreements, look into the agreements regarding canada, then see what the reference number is for that agreement and look up the same agreement number on the opsi website for full details of double taxation agreementbetween uk and canada, that might give u a bit more insight. be aware of any subsequent amendments to the agreements. also best bet and safest would be to take the advice of an accountant who is well versed in double taxation agreements



isnt the uk rent considered as uk income for tax purposes? or do u not have to pay tax because the income is below taxation limits? i was under the assumption one didnt get any allowance allowed free from income tax if u were not resident in a country. atleast thats the way tax allowances work in some countries. also if one is a USA citizen i heard one has to submit tax returns for world income even if they are not resident in usa !!! (my info may be wrong on this). is there any similar rule for uk citizens even if they dont have any uk income and do they have to file income tax returns in uk even in that situation regarding their world income?

also what happens regarding capital gains if uk property sold when domiciled abroad with & also without uk citizenship scenarios.

also can u give some links for accountants well versed in double taxation agreements etc. would be interested in knowing about such firms especially if they take clients outside the cities they work in, but would prefer such firms with branches in many big cities in uk. any pointers in this regard is much appreciated.

More correctly my UK income is below the threshold for taxation. This also involved moving savings to the IOM (Kaupthing) as the interest pushed my savings well above the lower limit. So long as you can prove that you are NOR, then Kaupthing don't have to retain tax.
You do get UK allowances if you are expat, it's not where you live that matters, but where the money is earned.After 5 years of NT, you may expect a nice letter informing you that you aren't required to submit a return, but be careful, be very careful, even membership of a club or a motoring organization is enough for the revenue to claim that you have UK residence.

A colleague of mine ended up paying back 5 years worth of tax (he was PAYE but "no tax" because he worked for 2 days in the UK, HMRC deemed the whole period to be taxable after that, and you are restricted with with pensions in the UK too.

Lanham and Francis http://www.lanhamandfrancis.co.uk/pages/about/offices.shtml are well versed in expat tax, I won't discuss specifically, but my yearly costs are very reasonable, and even though I have no need to submit a return, I retain them in case of any issues. Talk to Gary Bishop.

Please be very careful with the terms "non resident", "not ordinarily resident" and "domiciled" , their meanings are a little complicated and any misunderstanding can cause a lot of trouble. For example I am not resident and not ordinarily resident but domiciled in the UK, whereas my wife is resident by not domiciled in the UK. Google the terms and see just how vague the explanations are.

Get professional advice, don't listen to what you read here.

bubblesmoney

Captain_Mainwaring wrote: »

More correctly my UK income is below the threshold for taxation. This also involved moving savings to the IOM (Kaupthing) as the interest pushed my savings well above the lower limit. So long as you can prove that you are NOR, then Kaupthing don't have to retain tax.
You do get UK allowances if you are expat, it's not where you live that matters, but where the money is earned.After 5 years of NT, you may expect a nice letter informing you that you aren't required to submit a return, but be careful, be very careful, even membership of a club or a motoring organization is enough for the revenue to claim that you have UK residence.

A colleague of mine ended up paying back 5 years worth of tax (he was PAYE but "no tax" because he worked for 2 days in the UK, HMRC deemed the whole period to be taxable after that, and you are restricted with with pensions in the UK too.

Lanham and Francis http://www.lanhamandfrancis.co.uk/pages/about/offices.shtml are well versed in expat tax, I won't discuss specifically, but my yearly costs are very reasonable, and even though I have no need to submit a return, I retain them in case of any issues. Talk to Gary Bishop.

Please be very careful with the terms "non resident", "not ordinarily resident" and "domiciled" , their meanings are a little complicated and any misunderstanding can cause a lot of trouble. For example I am not resident and not ordinarily resident but domiciled in the UK, whereas my wife is resident by not domiciled in the UK. Google the terms and see just how vague the explanations are.

Get professional advice, don't listen to what you read here.

thanks a lot for the helpful pointers.

just a few clarifications, i guess IOM = isle of man. is Kaupthing a bank in IOM??? do they allow IOM based accounts for non uk+non IOM residents. i guess IOM tax rates are in the region of 10-20% or is it different for non IOM residents? i did have a v good chance of working in IOM a couple of years ago but didnt due to various reasons but the tax reasons seem tempting. so just keeping myself updated incase i bite the bullet at a later date.

just exploring these things incase it is of use for the future. no plans yet of going down this route but one never knows. just keeping myself informed on this issue especially from others like u who have walked this path before.

also what is 'NT', is it something similar to nonresident etc