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Where Taxpayers and Advisers Meet

Can a normal calendar be used to become a non-resident

foxmccloud
Posts: 25
Joined: Tue Apr 17, 2018 12:14 pm

Can a normal calendar be used to become a non-resident

Postby foxmccloud » Mon Jan 14, 2019 4:50 pm

I anticipate moving abroad in 2020 for a whole calendar year without returning. I have some shares and commodities that I may sell in that year. I bought them a few years ago in the UK and I am a UK resident. Would I need to extend my stay in that country to the whole financial year (until April) if I was to automatically be classified as a non-resident?

GOV website says:
You’re automatically non-resident if either:

you spent fewer than 16 days in the UK (or 46 days if you haven’t been classed as UK resident for the 3 previous tax years)
I just don't know if this is the tax year or not. And I don't know if I will need to pay CGT to HMRC if I bought the shares here.

AGoodman
Posts: 885
Joined: Fri May 16, 2014 3:47 pm

Re: Can a normal calendar be used to become a non-resident

Postby AGoodman » Mon Jan 14, 2019 6:59 pm

Tax year

And if you have been UK resident for 4 of the prior 7 years, and return within 5 tax years you would be taxed on all gains you made while away

foxmccloud
Posts: 25
Joined: Tue Apr 17, 2018 12:14 pm

Re: Can a normal calendar be used to become a non-resident

Postby foxmccloud » Mon Jan 14, 2019 8:09 pm

Tax year

And if you have been UK resident for 4 of the prior 7 years, and return within 5 tax years you would be taxed on all gains you made while away
Thanks!

Why isn't the 5 year return rule not mentioned in that article? So If I am abroad when I sell the shares I will pay tax in accordance to that country and then have to pay again in accordance to the UK rules? I.e. double tax?

foxmccloud
Posts: 25
Joined: Tue Apr 17, 2018 12:14 pm

Re: Can a normal calendar be used to become a non-resident

Postby foxmccloud » Mon Jan 14, 2019 8:17 pm

So I did some reading and it says we can offset the tax owed to HMRC with the tax paid in the foreign country. It also says the tax will be payable on UK assets. Then what about American shares or how does crypto count?

AnthonyR
Posts: 303
Joined: Wed Feb 08, 2017 2:33 pm

Re: Can a normal calendar be used to become a non-resident

Postby AnthonyR » Tue Jan 15, 2019 12:13 pm

Crypto is taxable in pretty much the same way as shares. It's also worth noting that crypto to crypto is a disposal and subject to CGT. So for example selling Bitcoin to buy Ripple is a disposal of the BTC subject to CGT.

Whether you are subject to CGT depends on where you and the asset are located. If you are resident it's all taxable unless the asset is offshore and you are non-domicile and claim the remittance basis. If you are non-resident only residential property is taxable, but if you come back within 5 years then everything that should have been taxed comes back into charge.

Bear in mind the above is just UK advice. Wherever you go to may want to tax you as well (hence your reference to double taxation relief).
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

foxmccloud
Posts: 25
Joined: Tue Apr 17, 2018 12:14 pm

Re: Can a normal calendar be used to become a non-resident

Postby foxmccloud » Tue Jan 15, 2019 2:46 pm

Great answer thanks!!
If you are non-resident only residential property is taxable,
I assume that this in in reference to property in the UK? Property abroad will not be taxed if you are non-resident?

AGoodman
Posts: 885
Joined: Fri May 16, 2014 3:47 pm

Re: Can a normal calendar be used to become a non-resident

Postby AGoodman » Thu Jan 17, 2019 5:22 pm

Correct

(it extends to all UK property from 6 April)


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