more than 15 years in UK means permanent tax resident?

[IslandMan]

Hi
I am new here. I read that there are new rules coming in for taxing foreign income in that if you have been tax resident in the UK for greater than 15 years , even if you spent all of your time outside the UK you are liable to pay UK tax.

I am considering emigrating potentially permanently.
I am scared to buy a house in case this makes me considered as UK resident even on a BTL basis. I do not own any property at present.

Do you think it is possible that just by being a UK citizen and not living in the UK it is possible that you could end up still getting taxed? Is it better to give up UK nationality ? I have an option to take irish nationality . would this be more tax efficient ?

[maths]

Your post seems contradictory.

The first question is whether you are currently UK resident or not.

If you are UK resident and from the tax year 2017/18 you will have been UK resident for 15 out of the previous 20 tax years then you become deemed domicile for tax purposes. In which case the remittance basis is no longer available to you.

What are you trying to achieve?

[SteLacca]

You are also failing to see the interaction of residence and domicile with UK tax. If you emigrate permanently as you suggest, then the question of domicile is moot. Only income arising in the UK would be subject to UK tax (so potentially rental income and any other investments you leave behind).

Don't forget to register as a non-resident landlord.

On a residential property, on eventual sale you will be liable to CGT regardless of your residence or domicile position.

[IslandMan]

thank you for the reply
from what I understand if i spend a full tax year abroad i will then not be liable to pay any UK taxes on my earning, as I have no property or assets.

If I did choose to buy a property and rent it out, would I still not pay any UK taxes on any rental profit as long as I stayed living outside the UK?

Upon returning to the UK I would live in the property.

[AnthonyR]

If you are non-resident, you are still taxable on UK income, which includes property rental income (and there is a non-resident landlord scheme to ensure HMRC get their money). This means that even if you never step foot in the UK again you would still be taxable on UK rent. However, all non-UK income would not be taxable here, so if for example, you bought a property in Spain you wouldn't pay tax on it in the UK (although you would pay in Spain).

Otherwise, you are taxable in the UK on your worldwide income unless you are non-domicile. A non-domicile can elect to be taxed only on remittances (income and gains brought into the UK), however after 7 years in the UK you have to pay £30,000 a year to elect, after 12 years it's £60,000 and after 15 years here you can no longer elect and are treated as a long term resident and taxable on worldwide income.

If you have considerable offshore income it's worth getting some professional advice to review your residence and domicile status to consider if it's worth moving offshore.