Repatriating to the UK

Walesnum1

I Left the UK in October 2020 to work full time in Bahrain. I had been a UK resident up until that point.

I will be a non-UK resident for April 2021-22 as I am working in Bahrain full time for a full UK tax year.

I will be ceasing full time employment in Bahrain in July 2022 and repatriating to the UK the same month for good.

As I will have spent less than 5 years in Bahrain (therefore a temporary non-UK resident) and will be spending less than 183 days (April-July 2022) in Bahrain during the final tax year I spend abroad (therefore I'll spend more days in the UK compared to Bahrain during the 2022-23 tax year), will I need to pay tax on wages I've received while living in Bahrain (April - July 2022) or will split year treatment still apply and I will only be taxed on income I make within the UK once I return (August 2022 - April 2023)?

Jeremy535897

It is a complex area. See:
https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3
https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12190

Walesnum1

Jeremy535897 said:

It is a complex area. See:
https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3
https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12190

I've had a look through those documents multiple times but still can't get my head around them. I can't work out if I have to remain in Bahrain for 6 months (183 days) until October or if I'm allowed to repatriate before then (July) and still not have to pay tax on my Bahrain wages

Jeremy535897

Is your case not a case 6 situation?
https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12230

The split year rules don't look at a 183 day test in the year of return:

"In some circumstances an individual may receive Case 6 split year treatment if they were non-UK resident in the previous tax year; because they worked full-time overseas, and they cease to work full-time overseas in the tax year to which split year treatment applies.

They must:

• be UK resident for the tax year in question
• have been not UK resident for the tax year before the tax year in question, because they either:
  • satisfied the third automatic overseas test for that year )(see https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm11140 ), or
  • if the year was 2012-2013, worked full-time overseas for the whole of the tax year under the rules in force prior to the SRT
• have been UK resident for 1 or more of the 4 tax years before the year in which they are not UK resident under the previous bullet point. So may have to consider 5 years before the relevant year
• be UK resident in the tax year following the year in question (whether or not it is a split year)
• satisfy the overseas work criteria for a relevant period

A relevant period is a period that:

• begins with the first day of the tax year
• ends with a day in that tax year on which the individual does more than 3 hours work overseas

An individual will satisfy the overseas work criteria if they:

• work full-time overseas during a relevant period
• have no significant break from overseas work during that period
• do not work for more than 3 hours in the UK on more than the permitted limit of days during that period
• spend no more than the permitted limit of days in the UK during that period"

Walesnum1

Jeremy535897 said:

Is your case not a case 6 situation?

This is the one that I thought matched my circumstances, but couldn't figure out if the split year rules also took into account the 183 day test in the year of return. As you say the split year rules don't look at the 183 day test, does that mean I can return before spending 183 days in Bahrain (July), and still get split year treatment and therefore not have to pay UK taxes on the wages I received during the portion of the tax year I was living in Bahrain (April - July)?

Jeremy535897

That is my view, but you should take proper professional advice.