What you should know before you start living in UK – TaxBack

from the blog.

What you should know before you start living in UK

UK Expats: Important Tips to aware before you Establish Residency in a New Country

Even if you haven’t lived in the UK for some time now, you’re still subject to UK tax rules, unless HMRC deems otherwise. What most UK expats are not aware of is that the arm of the tax man can reach them, regardless of the distance they put in between. This is why establishing a non-UK domicile is important.

To succeed, UK expats must pass some tests, one of which includes giving up his domicile of origin, because they’re not allowed to have two domiciles. They must also show that their new home overseas is permanent, and they have no intention of ever returning to the UK on a permanent basis. There are some things they must relinquish as well, such as the right to vote, and to own a burial plot.

Do you think you can do all these? It’s not like you can’t visit the UK, however. You’d still be allowed to step on UK soil, but as a tourist rather than a citizen. To help you make a sound decision, you should understand the importance of establishing residency abroad.

Find out how much tax your owed with our UK tax refund calculator

Tax Advantages

As already mentioned, a non-UK domicile will keep you safe from the UK tax man. If you can prove that you no longer have connections, he can no longer charge you with 50% tax on your world income. If your country of choice happens to have lower taxes than the UK, you hit the jackpot. The only time you are liable for a UK IHT is if you own a property in the UK. Since part of showing commitment to your new country is to dispose of your family home, and sever all business and social ties in the UK, you won’t have to deal with UK IHT either. This means you’re fairly out of reach of the UK tax man. Now all you need to do is find a company that can help a UK national file a tax refund in your new domicile.

You Will Find Various Opportunities 

Whether you intend to work or start a business, establishing residency gives you access to plenty of opportunities and advantages. You won’t have a problem owning a property, for example, since you’re no longer considered an alien. Since most foreign countries have strict rules on foreign property ownership, being a permanent resident frees you from such restrictions. Whatever the locals enjoy, you will enjoy too.

Transfer of Trust

Once you drop your UK domicile you can easily transfer assets into trusts without incurring a 20% chargeable transfer. If you still have properties in the UK, you can just convert them into non-UK assets and then set up a trust where you can transfer such assets.

Establishing residency in a new country will change your life forever, because you need to embrace your new domicile and renounce the original one. This also involves a lot of work since you need to change a lot of things, from your driving licence to your gym membership club. Suffice to say that before you can officially call yourself a local, you have plenty of legwork to do and documents to comply with.

Where tax is concerned, however, you can rely on a company that provides tax return services for a broad demographic. Since your case is different now than when you were a UK resident, you must work with a firm that specialises on your needs.

Tips to claim TAX & PAYE TAX Rebate Key Questions From Our Clients

Teaching Agency UK
Britbound.com
www.theworkingholidayclub.com
www workabout org uk
How to Claim PAYE Tax Back
Best Teaching Agencies in London
Tax on Tips UK
PAYE Tax Rebate



Related Posts

Are We Really in a Housing Market ‘boom’?

The challenges of 2020 have shone a spotlight on the nation’s home life in a way that few could have predicted and a seemingly resilient factor in the ongoing fear and uncertainty wrought by the Covid-19 pandemic has been the...

Greater Employment Opportunities by Spending Your Tax Refund Wisely

If you’ve been living in the UK and owed a tax rebate, you could use it to extend your skills and become a dream employee. Spending Your Tax Refund Wisely will mean more cash back in your pocket at the...

Covid-19: Income Support for Self-Employed Launches

Covid-19 is not only a health crisis for self-employed launches but also a pressing employment crisis. The HMRC has begun to contact over 3 million taxpayers who could be qualifying for the Self-Employment Income Support Scheme (SEISS) of the government...

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »