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Where Taxpayers and Advisers Meet

Domiciled abroad and part resident and part non resident

Asvsix
Posts:38
Joined:Wed Aug 06, 2008 4:00 pm
Domiciled abroad and part resident and part non resident

Postby Asvsix » Sun Feb 07, 2021 2:46 pm

Mr A is domiciled in USA. He came to work in the UK from July 2019 to June 2020. He has gone back to USA permanently. He was taxed by his employer under tax code "OT". He has registered for self assessment before leaving the UK. He is deemed resident in 2019/20 tax year because he spent more than 183 days in the UK, does he qualify for UK personal tax free allowance in full or partially? How does he claim this on his tax return? Does his also have to make a claim for remittance basis? What other aspects does he need to consider?

Thank you.

AGoodman
Posts:1173
Joined:Fri May 16, 2014 3:47 pm

Re: Domiciled abroad and part resident and part non resident

Postby AGoodman » Tue Feb 16, 2021 2:39 pm

Yes, full personal allowance for a year when he was UK resident.
He claims it on his tax return in the normal way
He needs to claim the remittance basis if he wants to benefit from it (he would lose his personal allowance as a result of claiming it)

He needs to make sure that the tax he pays in the UK can be credited for US tax purposes or his UK income is included in the various exemptions for Expats.

AGoodman
Posts:1173
Joined:Fri May 16, 2014 3:47 pm

Re: Domiciled abroad and part resident and part non resident

Postby AGoodman » Tue Feb 16, 2021 2:41 pm

You don't mention the salary. If his income is over £100k, the personal allowance is reduced. Over about £124k he won't have one.

Asvsix
Posts:38
Joined:Wed Aug 06, 2008 4:00 pm

Re: Domiciled abroad and part resident and part non resident

Postby Asvsix » Tue Feb 23, 2021 3:32 pm

AGoodman,

Thank you very much!

Asvsix
Posts:38
Joined:Wed Aug 06, 2008 4:00 pm

Re: Domiciled abroad and part resident and part non resident

Postby Asvsix » Fri Feb 26, 2021 11:49 am

Hello,

Mr A came into UK in mid-August 2019, would the split year would apply for tax purposes?

Mr A, was in the UK for a total of 207 in the 2019/20 tax year Between August 2019 and 5 April 2020 he spent 22 days working in the US. His total working days in the UK was 82 days. Does this affect him getting the full personal allowance for 2019/20?

Best Regards

AGoodman
Posts:1173
Joined:Fri May 16, 2014 3:47 pm

Re: Domiciled abroad and part resident and part non resident

Postby AGoodman » Fri Feb 26, 2021 3:28 pm

He gets full personal allowance.

He may get split year treatment but it depends on a lot more than days. He needs to meet one of the cases 4-8:

https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12000

Asvsix
Posts:38
Joined:Wed Aug 06, 2008 4:00 pm

Re: Domiciled abroad and part resident and part non resident

Postby Asvsix » Sat Feb 27, 2021 11:17 pm

AGoodman, thanks so much!


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