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Where Taxpayers and Advisers Meet

Visitors tax Liability

popular
Posts: 6
Joined: Sat Jun 17, 2017 3:26 pm

Visitors tax Liability

Postby popular » Sun Jun 02, 2019 3:56 pm

Following the demise of my father in America, where he had resided for many years, my mother his widow, has come to stay with us in the UK for emotional support during her initial period of bereavement.
Eventually she will return to her home in the United States where she and her late husband were long-time residents and tax payers.

We have been advised that whilst she is permitted to remain in the UK for 90 days she must not to exceed that period or she will be required to submit a tax return to HMRC.

As her only remaining family we would like to be able offer her hospitality in the future, and would be grateful for any advice on permitted future visits to the UK when she can stay with us without involving the complexities of tax obligations in the UK.

maths
Posts: 7539
Joined: Wed Aug 06, 2008 3:25 pm

Re: Visitors tax Liability

Postby maths » Sun Jun 02, 2019 7:04 pm

The UK tests for determining UK residence are a little complex.

If your mother spends 183 days or more in the UK in a UK tax year she will be resident.

If she lives in your home for 30 days or more in the tax year whilst retaining her own home back in the USA but not living in the USA home for at least 30 days then again she will be UK resident.

Is mother a green card holder or an American citizen?

What types of income does she have?

maths
Posts: 7539
Joined: Wed Aug 06, 2008 3:25 pm

Re: Visitors tax Liability

Postby maths » Sun Jun 02, 2019 7:17 pm

If she lives in your home for 30 days or more in the tax year whilst retaining her own home back in the USA but not living in the USA home for at least 30 days then again she will be UK resident.
My comment above should have read:

If she lives in your home for 30 days or more in the tax year whilst retaining her own home back in the USA but not living in the USA home for at least 30 days then again she MAY be UK resident; depends upon whether your house may be treated as mother's home. This will in part depend upon how long mother stays.

DavidTreitel
Posts: 201
Joined: Thu Aug 16, 2012 4:31 pm

Re: Visitors tax Liability

Postby DavidTreitel » Sun Jun 02, 2019 7:32 pm

Life is a little more complicated than you say. From a US perspective, as a US person your mother in law will continue to report worldwide income and gains. The US may give credit for UK tax payable. The treaty between the two countries can over-ride domestic UK law on residence if needed. Do not overlook inheritance tax should your mother in law have a domicile of origin within the UK.

popular
Posts: 6
Joined: Sat Jun 17, 2017 3:26 pm

Re: Visitors tax Liability

Postby popular » Mon Jun 03, 2019 11:12 am

Many thanks for the advice. Our mother has lived in the U S for over 40 years on a green card. She has no property or assets in the UK and has been a guest at our home for only the past 3 weeks. It looks as if it is in her best interest is to return to her residence in the US without delay if she does not want to generate a UK tax liability.
As for the future it would probably be better if we visit her at her US home.

AGoodman
Posts: 805
Joined: Fri May 16, 2014 3:47 pm

Re: Visitors tax Liability

Postby AGoodman » Mon Jun 03, 2019 11:54 am

She only needs file a tax return if she is UK tax resident for the year.

The rules are set out at great length in RDR3 (available via google) but, assuming she:

(a) has not been tax resident here for any of the prior 3 tax years;
(b) does not work;
(c) spent less than 90 days in the UK during each of the last two tax years

she can likely spend up to 182 days in the UK during this tax year (6 April '19 - 5 April '20).

She would not be caught by the "UK Ties" test because she only has one tie this year, the available accommodation, and two are required to be caught.

If she spent over 90 days here this tax year, then next tax year (2020/21) she would be limited to 120 days in the UK (she would have two ties: accommodation + 90-day tie).

If she has only been here three weeks then she could stay another 5 1/2 months this year. The 2nd automatic rule (homes) isn't a risk so long as she keeps her US home and spends 30 days there during the tax year.

maths
Posts: 7539
Joined: Wed Aug 06, 2008 3:25 pm

Re: Visitors tax Liability

Postby maths » Mon Jun 03, 2019 4:45 pm

Quite frankly I wouldn't worry about any UK tax charge.

Even if she became UK resident the UK/USA double tax agreement would almost certainly resolve any dual residence in favour of USA.

Life's too short. Let your mum stay here as long as she wants.

Any UK tax probs I'll sort it!


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