This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Residency

Mopidd
Posts:1
Joined:Sat Aug 25, 2018 3:08 pm
Residency

Postby Mopidd » Sat Aug 25, 2018 3:41 pm

I live most of the year in Spain and I am a British expat. I want to spend a year out of the Spanish tax system so that i can receive a tax free payment from my pension. By the end of this year I will have spent 187 days away from Spain and I need to know if that will allow me to become a non resident for this year. As the financial year in the UK goes from 1st of April to the end of March, I will have only spent only 111 days in the UK by the end of 2018. I realise this does not automatically qualify me for residency in the UK, but I have spent more than 90 days in the UK for the previous two tax years, have an apartment in the UK and have two children and three grandchildren living in the UK. will that be enough to allow me to be considered resident in the UK for the 2018-2019 tax year?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Residency

Postby AGoodman » Wed Aug 29, 2018 4:13 pm

Being tax resident in the UK would not prevent you also being tax resident in Spain. Also bear in mind that the Spanish residence rules are not just based on days - you can also be tax resident via having your centre of vital interests there and if you have spent nearly half a year there, and were resident there last year, I would have thought this was a very big risk.

The UK position is now just a formula - see RDR3.

If you have a home here and spent over 90 days here in recent years, you will need to do 121 days over the course of the UK tax year to be tax resident for the entire tax year. You can't qualify for the family tie on the back of adult children. There is no need to achieve the days by the end of the calendar year 2018 for UK purposes.

If you can't do that by 5 April 2019 then take a look at the 2nd Automatic test. Failing that, you are probably not UK resident but bear in mind what I said above - it may not help you anyway.

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

Re: Residency

Postby maths » Wed Aug 29, 2018 6:55 pm

If you become a UK resident and lose Spanish residency then under the DTA any non-government pension will be subject to UK income tax only.

If you however become UK resident but also remain Spanish resident, under the DTA your dual residence may be resolved in favour of Spain; if so then liability will arise in Spain only.

If you spend 183 days or more in the UK tax year you will be UK resident (111 days plus at least 72 days between 1 January 2019 and 5 April 2019 inclusive). Alternatively, as AG states, you could become UK resident under the Sufficient Ties test.


Return to “International Tax”