Establishing UK non-residency

[WillO1]

I am considering moving abroad (to Singapore) and wanted to find out at what point I would establish UK non-residency for tax purposes. From what I have read, my understanding is that I could be in the UK for up to 183 days from 6 April 2009 to 6 April 2010 and from then on, I could spend an average of 91 days per year in the UK over the full 4-year tax period from 6 April 2009 to 5 April 2013. Hence, if I used the full 183 day allowance this year, I could only spend around 60/61 days in each of the following 3 years in the UK. Is this a correct interpretation? If not, how should I plan this? Can you also please help me understand the more recent rulings on counting the number of days in the UK. Is this now based on the number of nights here, rather than the number of full days?

[Peter D]

http://www.hmrc.gov.uk/cnr/faqs_general.htm
May help you and the numerous pages covering this subject. Just use the search engine. There have been some recent changes, although small, for instance the day of arrival and departure counts as whole days even if you arrive at 2350 hours.
You should consider your postion carefully. The IT is lower in Singapore at a mere 20% top rate and unless you are trading then there is no CGT. If you were to remain out of the UK for 5 complete 'Tax Years' then you would be exmept from UK capital gain tax but then may be liable to IT on world wide income in your chosen country of residence. Regards Peter

[Lambs]

W,

The recent cases on this suggest that HMRC is becoming increasingly keen to retain UK taxpayers within the UK tax net. And has enjoyed some success in its attempts. I am sufficiently long in the tooth to remember the 'available accommodation' rule, which ostensibly went out in the early 90s. (1994?) Or so you might think - some of those recent cases indicate otherwise.

I am not a specialist in tax residence but I do think that particular care needs to be exercised here, for someone who has been habitually resident in the UK (e.g. basically for most of his or her life). When reading about some of those recent cases, I had to check I (or perhaps the presiding judges?) hadn't confused residence with domicile...

Certainly if intending to maintain a residence over here, or make regular/frequent return journeys, I'd be careful and seek professional advice. Particularly if you don't fall into the category of working overseas on a full time contract for at leat a complete tax year.

Regards,

Lambs