UK tax on overseas income

[jimclark1904]

Hi
I have been working in India for the past 12 years and have only spent approx 20 days in the UK each year up until 2017-18 tax year so have not paid UK taxes.

Last year I bought a house in the UK and my family moved back to the UK while I continued to work in India. My contract in India is now over and I am back in the UK and will probably be here for the remainder of this tax year.

I have 2 questions:

1. Can the tax I have paid on my earnings in India since April this year be offset against any UK tax liability.

2. I have family on the isle of man and was thinking of spending time with them. Do days on the isle of man count as days in the UK for tax purposes.

Thanks

Jim

[etf]

Days in the IOM (like the Channel Islands) are not treated as days in the UK. Perhaps the reason why Nigel Mansell played a lot of golf there.

Have you considered split tax year treatment which might allow the 2018/19 tax year to be split into non-UK resident and resident periods?

[jimclark1904]

Days in the IOM (like the Channel Islands) are not treated as days in the UK. Perhaps the reason why Nigel Mansell played a lot of golf there.

Have you considered split tax year treatment which might allow the 2018/19 tax year to be split into non-UK resident and resident periods?

etf
Thanks for the reply. I was not aware of the split tax year option and this looks like it is the way to go.

Do you know if I can use my 90 days in the UK before I apply for a split tax year. For example I have used approx 45 days so far this year and plan a trip to the isle of man for maybe 2 months in a couple of weeks time so when I return from the IOM early Jan I will have been in the UK for 60 days in the first 8 months of the year. Or am I allowed 90 days pro-rata so approx 60 days in 8 months?

Thanks again

Jim

[etf]

Once you have established you are UK resident for 2018/19, you will need to take a look at split tax year Cases 4-8 that can apply for individuals arriving in the UK (see RDR3 which details the conditions for each case).

Please also note the ordering rules that determine which case has priority where more than one is available.