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Where Taxpayers and Advisers Meet

SRT re non-resident for 2018/19

bc185
Posts:25
Joined:Wed Aug 06, 2008 3:33 pm
SRT re non-resident for 2018/19

Postby bc185 » Fri Feb 02, 2018 12:33 pm

I have a client who will be out of the UK on 6/4/18 until summer 2019 working for an overseas employer in the Middle East - the contract may be extended for 3 years.
The client does not personally own any property in the UK and has always been UK tax resident. The client is divorced - his wife owning the family home. The client hopes to return to the UK for no more than 30 days in tax year 2018/19 to see his children. The client is also a Director of a UK trading and investment company . The company will continue to trade and rent out its properties whilst the client is overseas. The client may require to remit money to the Uk to his family whilst overseas - will this be taxable in the UK?
The main question is will the client be non-resident for uk income tax in 2018/19? Does the fact that he will still be controlling a UK company from overseas affect the SRT? The client is also considering gifting some shares in his company to his children (over 18) whilst overseas - will CGT be applicable if non-resident? All comments welcomed and thanks in advance.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: SRT re non-resident for 2018/19

Postby maths » Tue Feb 06, 2018 12:53 pm

The client may require to remit money to the Uk to his family whilst overseas - will this be taxable in the UK?
No.
The main question is will the client be non-resident for uk income tax in 2018/19?
It would seem he would satisfy the third automatic overseas test for 18/19 and split year for 19/20 if he returns to the UK in that tax year.

Does the fact that he will still be controlling a UK company from overseas affect the SRT?
No. However, if whilst visiting the UK he carries out some work in connection with the company(ies) this would constitute working in the UK (assuming more than 3 hours on any day); there is a 30 day limit.
The client is also considering gifting some shares in his company to his children (over 18) whilst overseas - will CGT be applicable if non-resident? All comments welcomed and thanks in advance.
Yes if he is classified as only temporary non-resident.

albert2018
Posts:1
Joined:Tue Oct 02, 2018 1:12 pm

Re: SRT re non-resident for 2018/19

Postby albert2018 » Sat Oct 13, 2018 3:29 pm

Maths,

Thanks for the answers. I read but cannot find it anymore a document highlighting the fact that work done overseas for a local company may be considered UK work ?

In my case individual used to be director of a UK trading company he co owns 50%.

Can he work on behalf of this company while abroad without having UK work hours ? some of the trips he does overseas are paid by the UK company.

Thanks for the clarification on this matter and if you have any document to refer. The RDR does not include this case I believe.


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