Saving options for uk - Non Resident

JamesU

If you satisfy the criteria for non-residence for income tax purposes, does that mean you can also dispose of assets without the requirement to pay UK CGT?

JamesU

Aegis

JamesU wrote: »

If you satisfy the criteria for non-residence for income tax purposes, does that mean you can also dispose of assets without the requirement to pay UK CGT?

JamesU

Only if you don't then return to the UK within the next 5 years, if memory serves. If you do, I believe you're deemed to have been liable to UK CGT and will be chased for the owed money.

drlabman

Loughton_Monkey wrote: »

I understand about the full time employment, but that (by assumption) applies to the OP. Upon taking up employment for 12 months or more abroad, you apply to become non resident for tax purposes.

The first time I did this, it was in USA for exactly 12 months (plus a week actually). Tax free status applied completely on my earnings for that 12 months - which were not a tax year, but July to July.

More recently (2000) I worked abroad for 6 years. I rented out both properties, and simply applied for "Non Resident Landlords Scheme" which allowed me to receive rent free of automatic tax deduction. My mortgage payments, agent fees etc. allowed me to show zero or minimal income - thus completely avoiding any tax.

So unless things have changed since 2006 when I came back, I stick by my statement of "To be non resident for tax purposes, you only need to be away for a certain period, in employement, in another country". the 'certain period' - to clarify - is 12 months.

The OP is working abroad. He claims to be 'non resident' and thus I assume that he simply applied and got non-resident for tax purposes status, as he is entitled to providing he is away for 12 months or more.

I agree entirely. Same applied to me.

Cook_County

To break residence under UK domestic law the courts have said that you need a "distinct break" in the normal pattern of life and you have left the UK for a "settled purpose" elsewhere.

HMRC accept that being in full time employment outside of the UK for a complete UK tax year (where the employment contract itself is greater than a UK tax year and work visits to the UK are fewer than 10 days) is sufficient evidence of a distinct break.

If Jamrock meets these crireria he will be non-UK resident for UK tax purposes.

Ownership of UK property can be a "bad" thing if it is not clear that there has been a "distinct break", it was one of the factors that recently counted against Mr Grace in the case of Grace v The Commissioners for Her Majesty's Revenue & Customs (TC00913).

Drlabman - I am sorry to have the break the news to you that things have changed dramatically. We have several updates of versions of HMRC 6 from HMRC since 2009, numerous court desicions disagreeing with HMRC guidance - plus much greater interest from HMRC in issues of residence.

Leaving for exactly 12 months is not going to work under domestic law, it never has, but it might work under some tax treaties.

To be certain about the OP we would need to know if he has a full time job abroad that will include a complete UK tax year plus the scale of visits back to the UK.

drlabman

Cook_County wrote: »

Drlabman - I am sorry to have the break the news to you that things have changed dramatically. We have several updates of versions of HMRC 6 from HMRC since 2009, numerous court desicions disagreeing with HMRC guidance - plus much greater interest from HMRC in issues of residence.

I don't understand your comment. What news is it that you've broken to me exactly? Did you mean to answer Loughton Monkey? Are you disagreeing with Loughton Monkey's assessment of his (or her) situation, or are you disagreeing with my agreement. Please clarify.

Tommyboi78

What would be your tax implications if you saved offshore ?

gozomark

Jonbvn wrote: »

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If the OP has a UK address, he should have the option to open a savings account with any bank/BS, except for ISA's.

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I Thought the question typically asked is "are you (permanently) resident in the UK ?" not "do you have a UK address ?"