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Where Taxpayers and Advisers Meet

Split year treatment - significant break in overseas employment

BritExpat
Posts: 8
Joined: Thu Apr 07, 2016 12:24 pm

Split year treatment - significant break in overseas employment

Postby BritExpat » Tue Nov 14, 2017 7:43 pm

Could someone please clarify the scope of "significant break" in overseas employment for split year treatment purposes - I retired from a full-time overseas job in July 2016, went to India for 6 months and returned permanently to the UK in Jan 2017. I was in a full-time job in the UK until Oct 2011 when I proceeded abroad for full-time employment and remained non-resident until my permanent return in Jan 2017. I have not worked at all since July 2016. Do I qualify for split year treatment?
Thank you

maths
Posts: 7450
Joined: Wed Aug 06, 2008 3:25 pm

Re: Split year treatment - significant break in overseas employment

Postby maths » Tue Nov 14, 2017 10:47 pm

The first issue is to ascertain your residence status for the tax year of your return ie 2016/17.

It seems unlikely you will be non-resident but highly likely you will be resident (under second automatic UK test).

If resident then split year treatment likely to apply under Case 4 or 8.

BritExpat
Posts: 8
Joined: Thu Apr 07, 2016 12:24 pm

Re: Split year treatment - significant break in overseas employment

Postby BritExpat » Wed Nov 15, 2017 8:54 am

Thank you very much, maths. Yes I am a resident in 2016-17. If the split year treatment is allowed, what will be the effective date - the date I ceased full-time employment (Jul 2016) or the date of return to the UK (Jan 2017)?

maths
Posts: 7450
Joined: Wed Aug 06, 2008 3:25 pm

Re: Split year treatment - significant break in overseas employment

Postby maths » Thu Nov 16, 2017 10:00 pm

I don't know all the facts but would suggest that the last day of the split year when you are treated as non-UK resident will be the day before you acquired a UK home ie sometime in January 2017 ie UK residency from the following day.


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