Non Resident UK British Citizens

stamboy

I understand that all British citizens based overseas are allowed a UK personal UK tax allowance.

Are CGT and other allowances also covered or just the normal income tax personal allowance?

I tried searching for this but couldn't find it specifically stated on gov website.

May need to call the tax office.

00ec25

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property

then see here:
https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculating-taxable-gain-or-loss

Annual Exempt Amount
You only have to pay Capital Gains Tax on your overall gains above your AEA.

Check the Capital Gains Tax rates and annual tax-free allowances.

https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances

don't get confused between UK non resident and non UK domicile. A UK citizen is UK domiciled irrespective of residence, tax calculation however is based on the residency position (in or out of UK) but that does not affect entitlements to what you get for being UK citizen.

stamboy

00ec25 wrote: »

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property

then see here:
https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculating-taxable-gain-or-loss

Annual Exempt Amount
You only have to pay Capital Gains Tax on your overall gains above your AEA.

Check the Capital Gains Tax rates and annual tax-free allowances.

https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances

don't get confused between UK non resident and non UK domicile. A UK citizen is UK domiciled irrespective of residence, tax calculation however is based on the residency position (in or out of UK) but that does not affect entitlements to what you get for being UK citizen.

Thanks for the info. I am confused now lol what's the difference in laymen's terms. But my understanding is that a UK citizen is entitled to all tax allowances regardless of their residence, is my understanding correct?

AEA? Annual exempt allowance i.e. £12k for CGT?

AhmedY123

Hi there,

That is correct, you wouldn't need to pay any Capital Gains Tax if you are under the personal allowance. If you have any other questions about this, feel free to let me know.

uknick

stamboy wrote: »

Thanks for the info. I am confused now lol what's the difference in laymen's terms. But my understanding is that a UK citizen is entitled to all tax allowances regardless of their residence, is my understanding correct?

AEA? Annual exempt allowance i.e. £12k for CGT?

Difference between residence and domicile? Years ago during our tax studies we were told, in simple terms, domicile is where you intend to be buried. You can be non resident for many years outside the UK, but if you intend to die in the UK that is where you are still domicile.

But, to be specific, HMRC rules state;

"Your domicile’s usually the country your father considered his permanent home when you were born. It may have changed if you moved abroad and you do not intend to return."

stamboy

AhmedY123 wrote: »

Hi there,

That is correct, you wouldn't need to pay any Capital Gains Tax if you are under the personal allowance. If you have any other questions about this, feel free to let me know.

Thanks PMed you

stamboy

uknick wrote: »

Difference between residence and domicile? Years ago during our tax studies we were told, in simple terms, domicile is where you intend to be buried. You can be non resident for many years outside the UK, but if you intend to die in the UK that is where you are still domicile.

But, to be specific, HMRC rules state;

"Your domicile’s usually the country your father considered his permanent home when you were born. It may have changed if you moved abroad and you do not intend to return."

Thanks, any benefit to be domiciled UK over non domiciled and vice versa? Thinking I'd prefer to be domiciled, the normal assumption by HMRC.

uknick

stamboy wrote: »

Thanks, any benefit to be domiciled UK over non domiciled and vice versa? Thinking I'd prefer to be domiciled, the normal assumption by HMRC.

How long's a piece of string?

That question can only be answered correctly if we knew all the details such as where you live now, where you expect to be living when you die, what UK taxes you hope to avoid if you are non domicile, what are the taxes where you wish to be domicile etc. etc..

If you are serious about this topic, I strongly suggest you get professional tax planning help.

stamboy

uknick wrote: »

How long's a piece of string?

That question can only be answered correctly if we knew all the details such as where you live now, where you expect to be living when you die, what UK taxes you hope to avoid if you are non domicile, what are the taxes where you wish to be domicile etc. etc..

If you are serious about this topic, I strongly suggest you get professional tax planning help.

I don't hope to avoid any taxes I just want to ensure I have allowances if needed to offset against any tax.

I'm assuming then the default UK domicile applies by HMRC unless proven otherwise.