UK Tax when your living overseas

thesquire

Basically, my question is along the lines of how you can be most tax efficient if your a UK resident, but now living overseas.

I moved overseas last year. I've emigrated, and whilst I'll not say yet that it is a move absolutely forever, it is certainly for the foreseeable future.

I wanted to ask about the most tax efficient ways of earning / making or receiving money from the UK when living outside it.

I guess I have three questions, linked by the principle of coming into money from the UK, ether via work done for a UK company whilst overseas and subsequently paid into a UK bank account, and other things such as capital gains and inheritances that you may at some point come into.

I know there are some 'loopholes' such as the well-known Rolling Stones trick of being outside of the UK for X-amount of the year to keep their taxes down to a minimal amount. If I return to the UK it will only be for up to a month or lets say a maximum of 7 weeks in a year.

How can I keep the tax legally down and deal with the one off's like the selling of a UK property and inheritances.

Of corse moving such money back to where I am is a hole other can of worms... I'll leave that question for another time!

Any information and advise will be gladly appreciated!

BoGoF

Your first sentence makes no sense, you can't be UK resident (for tax purposes) and live overseas 'for the foreseeable future'

antrobus

BoGoF wrote: »

Your first sentence makes no sense, you can't be UK resident (for tax purposes) and live overseas 'for the foreseeable future'

What I think what the OP means is that they are UK domiciled, but have gone to live overseas "for the foreseeable future" and are therefore non-resident for the purposes of UK income tax.

antrobus

If I was the OP I'd begin by reading this

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_078445

thesquire

I meant Citizen not Resident, or in this case non-resident.

Thanks to Antrobus for getting my drift and posting the link.

BoGoF

antrobus wrote: »

If I was the OP I'd begin by reading this

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_078445

This info is correct at present but may change if a current Treasury consultation becomes law where it is possible that an individual could be considered resident if as little as 10 days are spent in the UK

http://www.hm-treasury.gov.uk/consult_statutory_residence_test.htm

thesquire

Worth knowing, thanks for the heads up .

Cook_County

The OP may still be UK resident or ordinarily resident under current practice if not in full time employment abroad.

Randvegeta

Cook_County wrote: »

The OP may still be UK resident or ordinarily resident under current practice if not in full time employment abroad.

How exactly is that? He moved last year, and intends on staying abroad for the foreseeable future.

I believe the condition of which he would have to be considered ordinarily resident is if he is CURRENTLY resident, which he has clearly stated he is not.

Living overseas should mean you are liable to income tax from income that arises from the UK or a UK company, regardless of your place of residence.

So if you were to be employed by a UK company, you would be liable to UK TAX. However, you may be able to claim double taxation relief if you must also pay tax in your country of residence.

If where you live is a low tax jurisdiction, I would definitely suggest trying to maximize your earnings in THAT country, or from NON UK sources. If it is a high TAX jurisdiction, say, higher than the UK, then it shouldn't matter. It should fall under the double taxation stuff.

Cook_County

Randvegeta wrote: »

How exactly is that? He moved last year, and intends on staying abroad for the foreseeable future.

I believe the condition of which he would have to be considered ordinarily resident is if he is CURRENTLY resident, which he has clearly stated he is not.

Living overseas should mean you are liable to income tax from income that arises from the UK or a UK company, regardless of your place of residence.

So if you were to be employed by a UK company, you would be liable to UK TAX. However, you may be able to claim double taxation relief if you must also pay tax in your country of residence.

If where you live is a low tax jurisdiction, I would definitely suggest trying to maximize your earnings in THAT country, or from NON UK sources. If it is a high TAX jurisdiction, say, higher than the UK, then it shouldn't matter. It should fall under the double taxation stuff.

Randvegeta - just because you are choosing to evade tax does not mean other rather more honest folks should follow your lead. Have you read any of the recent case law on residence? If the OP is not in full time employment abroad and has not settled anywhere permanently s/he may still be UK resident even if s/he does not spend a single day in the UK in any single tax year.

What is your view on the current Condoc on residence please?

Randvegeta

Cook_County wrote: »

Randvegeta - just because you are choosing to evade tax does not mean other rather more honest folks should follow your lead. Have you read any of the recent case law on residence? If the OP is not in full time employment abroad and has not settled anywhere permanently s/he may still be UK resident even if s/he does not spend a single day in the UK in any single tax year.

What is your view on the current Condoc on residence please?

I do not evade taxes. By what definition am I evading taxes? I would hardly consider myself tax resident as of yet as I have not spent more than 6 months in this country.

Not everyone has difficulty grasping this simple concept. Perhaps you should see a doctor who specializes in learning disabilities. Imbecile!

The OP did not say s/he was unemployed. And under what possible reason could HMRC consider someone who spends 0 days in a tax year tax resident? If you are referring to UK derived income, I believe I have already covered that in my post.

Are you honestly suggesting that someone can live abroad, earn money abroad (not necessarily through employment) and still be classed a UK resident for tax purposes? This is sounding more and more like the horrible situation most American ex-pats face.

And to clarify once again, I am not a tax evader. But you, Cook County, are a moron, as is evident by your baseless slander.

What I am, is a tax AVOIDER. Very different!