Resident Or not

[alain]

I would like to know the resident or not resident difference, and if we can hope to paye less tax if we are not resident

regards

[hashman]

Have a look at the Revenue's notes on this in the first place and then come back with any questions -
http://www.hmrc.gov.uk/worksheets/sa109-notes.pdf

[alain]

i been to see your web page, what is it the difference between resident and domiciled, what avantage u can have when you are french but work here and have a house here but know already i will be back in 6 years in france, thanks

alain

[hashman]

Residence broadly speaking depends on physical presence in a country. Domicile is to do with the country which is your 'homeland'. It is a legal concept which can often be a very difficult area to deal with. This is very non technical but hopefully makes sense.

As you are French and you intend returning there in the not too distant future then I think we can assume that your domicile is in France.

There are a number of advantages to being domiciled outside the UK. I summerise the main ones as follows :

1. For income tax purposes you are only taxable on foreign income that you remit to the UK
2. For capital gains purposes you are only liable on foreign gains remitted to the UK
3. For Inheritance Tax purposes you are only liable in respect of assets situated in the UK

This is only a short summary. If you need more detailed advice you should see a professional adviser.