LEAVING THE UK
UK TAX ADVICE FOR NON-RESIDENTS
Our team of UK tax advisors specialise in working with British expats living abroad. Learn how to take advantage of your non-resident status with GTC.
HOW DOES UK TAX WORK FOR EXPATS MOVING ABROAD?
If you are leaving the UK, you may believe that dealings with HMRC are no longer required.
However, you may have ongoing obligations with HMRC, if you continue to receive UK sourced incomes.
Rental income
From property situated in the UK
Pension income
From the UK state or UK employer
Employment income
From workdays physically exercised in the UK
Dividend income
From UK companies
Interest income
From UK banks
PAYING UK TAXES MOVING ABROAD
One important point to reiterate is that the source of employment income is where you physically exercise work duties and therefore, if you suffer tax via PAYE while you are working overseas, you may be due a refund from HMRC.
Furthermore, it may be possible to request that you are not subject to tax withholding so you that you can receive earnings gross of tax through submitting a p85 ‘leaving questionnaire’ form. Further information can be found here.
LEAVING THE UK TAX SERVICES
Work with experienced non-resident tax advisors to reduce the amount of UK tax you pay
SRT residency planning
GTC can advise on the steps that you can take to exit the UK’s worldwide tax system so that you can minimise tax exposure while living overseas through achieving a non-resident status.
UK tax planning
GTC can advise on your exposure to UK taxation as a non-resident and the optimisation strategies available to limit or remove HMRCs right to tax your incomes.
Capital gains
GTC can advise on the capital gains tax implications of selling your main residence while you’re overseas including private residence relief.
UK tax return
GTC can submit your annual UK tax fillings taking into account all reliefs and deductions available to non-residents to ensure that your obligations with HMRC are met.
READY TO EXIT THE UK TAX SYSTEM?
Our leaving the UK services are designed to optimize your tax affairs and ensure compliance with HMRC while you are non-resident.
As a non-resident, you will only be liable for UK tax on certain types of income, and we will guide you on how to structure your affairs for maximum tax efficiency, ensuring that you retain as much of your international earnings as possible while staying compliant with UK tax laws.
LEAVING THE UK FAQs
Do I need to pay tax if I live overseas?
Your resident status is the first and most crucial step in determining the extent to which the UK can tax your incomes and gains.
If you are resident, as a starting point, you will be liable to UK taxation on worldwide incomes and gains and if you are non-resident, you will be liable to UK taxation on UK sources of income and UK property gains only.
If you are non-resident, it is possible to further reduce the UK’s right to tax your incomes and gains through double taxation agreements.
Do I need to pay tax on UK employment income if I live overseas?
If you are non-resident, the UK’s right to tax employment income is limited to income generated through workdays exercised in the UK.
If you suffer tax via PAYE while you are working overseas, you may be due a refund from HMRC. Furthermore, it may be possible to request that you are not subject to tax withholding so you can receive earnings gross of tax.
How can I become non-resident?
If your intention to reduce your UK tax exposure while living overseas, it is essential that you achieve and continue to achieve a non-resident status while you are living overseas.
You can achieve a non-resident status through managing your days of presence, work pattern, access to accommodation and ties to the UK.
Do I need to pay tax on UK property gains if I live overseas?
If you dispose of a UK residential property while you are a non-resident, the gain that you make will be assessable in the UK.
There are various reliefs and allowances available which reduce the taxable gain.
You must complete an online property return within 60 days of disposal. This is separate from a self-assessment tax return.
Will I be entitled to the tax free allowance?
Many non-resident individuals, including British & EEA nationals will continue to be entitled to the personal allowance (0% tax band) on an annual basis. You can check your entitlement here.
Providing that your UK sourced income is no more than the personal allowance, no tax will be payable to HMRC however, you may still have an obligation to disclose this income to HMRC on an annual basis.
What if I am subject to tax in the overseas country I am living in?
The UK’s network of double taxation agreements can mitigate double taxation by either completely removing the UK’s right to tax your income, limiting the tax rate that the UK can levy on your income or by allowing both the UK and overseas country to tax your income and requiring the overseas country to give a credit for tax suffered in the UK.
If you need to make a claim under a double taxation agreement, you will need to file a self-assessment tax return and complete HS302 or HS304 pages as necessary.
Do I need to complete a tax return if I live overseas?
If you continue to receive UK income, you will likely have an obligation to file a tax return irrespective of whether tax is payable. You can check your statutory obligations here. Sometimes, it will be in your best interests to file a tax return to claim a refund or rely on a double taxation agreement to exempt the UK from taxing your income.
What are GTC’s tax advisory fees?
Our tax advisory charges differ depending on the area of tax we are advising on and the complexity of the situation.
Our fees will be disclosed in the engagement letter or via email. You will only be charged if you decide to proceed with our services.
