Non-Dom tax planning of global income after 7 years stay in UK
Posted: Mon Mar 20, 2017 7:13 pm
I came into UK for the first time on 13th October 2011 & have been a Tax Resident since then. I have been filing my returns as a UK Non-Dom on remittance basis since the tax year 2011-12 onwards.
I have other sources of income (primarily rental) in Dubai, which I don’t bring into the UK and hence have been tax free in the UK so far.
I understand that the tax year 2017-18 will be my last year in which I can file my returns as a Non-Dom (remittance basis) & that from the tax year starting 6th April 2018, I will have to either pay the non-Dom charge of £30K, (if I wish to not pay tax on my global income) or start filing returns as a UK domicile.
I am trying to plan my taxes & have some questions:
1) If I decide to leave the UK & become Non Resident: Would I have to leave the country by 5th April 2018 (and cut all ties) if I do not want to pay the £30k non-Dom charge or do I have some more time in the year 2018 to leave the country?
2) For how long (tax years or calendar years) do I have to stay away from the UK before I return back, so that I can get another 7 years of non-Dom tax benefit & also not have to retrospectively pay tax on overseas earnings for the years in which I was away. (I heard that there is some rule that I must stay away for 5 financial/ tax years)
3) I have only 1 self-occupied residence house in UK in which my family & I live? Do I have to sell it before 6th April 2018 to avoid paying Capital Gains tax on it or do I get some more time / leniency since I am moving out of the country. If I sell it after I become a Non-resident ie. later in 2018 or in 2019, will I have to pay Capital gains tax on it?
4) If I do not wish to relocate from UK: Is there any efficient way to reorganize my overseas assets, to not have to pay tax on their income in UK, if I decide to continue to stay in the UK in 2018-19 & beyond.(& of course not pay £30K as non-dom charge).
Many thanks for your advise in advance.
Kind Regards,
I have other sources of income (primarily rental) in Dubai, which I don’t bring into the UK and hence have been tax free in the UK so far.
I understand that the tax year 2017-18 will be my last year in which I can file my returns as a Non-Dom (remittance basis) & that from the tax year starting 6th April 2018, I will have to either pay the non-Dom charge of £30K, (if I wish to not pay tax on my global income) or start filing returns as a UK domicile.
I am trying to plan my taxes & have some questions:
1) If I decide to leave the UK & become Non Resident: Would I have to leave the country by 5th April 2018 (and cut all ties) if I do not want to pay the £30k non-Dom charge or do I have some more time in the year 2018 to leave the country?
2) For how long (tax years or calendar years) do I have to stay away from the UK before I return back, so that I can get another 7 years of non-Dom tax benefit & also not have to retrospectively pay tax on overseas earnings for the years in which I was away. (I heard that there is some rule that I must stay away for 5 financial/ tax years)
3) I have only 1 self-occupied residence house in UK in which my family & I live? Do I have to sell it before 6th April 2018 to avoid paying Capital Gains tax on it or do I get some more time / leniency since I am moving out of the country. If I sell it after I become a Non-resident ie. later in 2018 or in 2019, will I have to pay Capital gains tax on it?
4) If I do not wish to relocate from UK: Is there any efficient way to reorganize my overseas assets, to not have to pay tax on their income in UK, if I decide to continue to stay in the UK in 2018-19 & beyond.(& of course not pay £30K as non-dom charge).
Many thanks for your advise in advance.
Kind Regards,