12 Top Tax Tips to Easter – #10 Overseas


top-tax-tip10Good planning and careful timing are critical if you want to maximise tax reliefs or minimise the tax bill on a transaction or investment, and to avoid falling foul of the system of penalties and interest levied by HM Revenue & Customs (HMRC).

The run-up to Easter is the perfect time to consider tax planning opportunities and to put in place strategies to minimise tax before the new tax year starts on 6th April 2016. That’s why we have launched a series of 12 tax tips to help you mitigate your tax bill.

Our 10th tax tip of the series focuses on UK tax for taxpayers residing overseas or people thinking of leaving the UK for tax puposes.

#10 Overseas

  • If you are planning to leave the UK for tax purposes, you will need to plan carefully as giving up UK tax residence is not always straightforward. There are also anti-avoidance rules designed to catch capital gains and some forms of income, if you do not spend five full years non-UK resident. Please speak to your HMT adviser
  • If you are a non-domicile, you will only benefit from the remittance basis if your unremitted overseas income and gains are less than £2,000 or you make a claim.
  • From 2015/16 non-domiciles who use the remittance basis and have been resident for at least 7 of the past 9 years will pay an annual charge of £30,000. The charge on a non-domicile who has been resident for 12 out of 14 years will be increased to £60,000.
  • Those resident 17 or more of the last 20 years will pay an annual charge of £90,000 to use the remittance basis in 2015/16 and 2016/17.
  • The rules on domicile change from 6 April 2017. Anyone who has been UK-resident for 15 out of the 20 preceding years will be deemed to be UK-domiciled for all tax purposes. If you are not yet UK-domiciled but have been resident here for over 13 years and intend to remain in the UK, you should seek advice. These rules are complicated so do take advice if any of these circumstances are applicable to you.

Tax is a complex matter, so we recommend that professional advice is sought when considering any of the above. Our highly qualified and experienced tax team would be happy to discuss your tax affairs with you.

If you have any questions regarding your tax affairs, please do not hesitate to contact our tax team on 01491 579740.