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Chartered Accountants of Poynton, Cheshire

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Pay less tax - Create a tax shelter investment

There are many ways to save tax - all of them perfectly legal.

Did you know that....

Tax can be effectively deferred by investment in Enterprise Investment Scheme shares, Venture Capital Trust shares (both subject to limits), or in film finance partnerships?

Call us at Appletons Accountants and we'll tell you more!

Tax Returns

If you submit your tax details to us, we can advise you of your exact tax liability.

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Home > Individuals & Families > Living Overseas > Working or Living Overseas

Working or Living Overseas

If you leave the UK permanently, you might be deemed to be no longer resident or ordinarily resident in the UK. This means you will only be taxed on the income arising in the UK such as bank interest or rental income from a UK property. Any earnings from the foreign country where you now live would not be taxed in the UK if you do not perform any work duties in the UK.

 

To gain this status, you should follow Revenue & Custom's non-statutory guidance, which means the absence from the UK must:

  • cover one complete tax year i.e. from 6 April to 5 April;
  • be such that you spend less than 183 days in the UK in any tax year; and
  • make sure that you spend, on average, 91 days or less in any tax year in the UK over a four-year period.

When you leave the UK, you should notify Revenue & Customs on form P85.

Foreign tax

Although your income might not be subject to UK tax, it will probably be subject to tax in the country where you are now working. If some of the income was subsequently subject to UK tax, double tax treaties exist to prevent it being taxed in both countries.

UK property and bank interest

During your absence from the UK, you might rent out your UK residence.

Any rental income derived, less allowable costs, will be taxable in the UK. In such cases, you will still normally need to complete a self-assessment tax return.

If you are not resident in the UK for tax purposes, you can apply for the bank interest to be paid gross i.e. without the deduction of tax. You need to submit form R105, available from www.hmrc.gov.uk, to your bank or building society.

Useful leaflets

HM Revenue & Customs produce leaflets covering:

  • Living or retiring abroad - IR138
  • Help sheet for Non-residents and Investment income - IR300
  • Residents and non-residents - IR20

If you are retiring abroad, you need to check the tax treatment of any pensions you might be entitled to receive.

If you are thinking or working overseas or employing foreign nationals, Appletons Accountants will be pleased to advise you on the tax implications.