Postby Brightonian » Tue Oct 02, 2018 5:19 pm
My client lived and worked in Italy for two years. Last year, he spent more time in the UK and will be judged UK resident under UK law for 2017/8. He will also be Italian resident under Italian domestic law for 2017 and possibly 2018 also,although that is not so clear cut. I am completing his 2017/18 UK tax return. Do I need to include his Italian employment income? He is resident under domestic law in both countries, but in any tie break, he would be UK resident, as this is his centre of vital interests. I have looked at Article 15 and this says that the remuneration of a resident of a contracting state shall be taxable ONLY in that state unless the employment is exercised in the other contracting state. What does resident mean in this context? Does it mean resident under domestic law, in which case, as a resident of Italy employed only in Italy, his income should be taxed only in Italy. Or does it mean resident in the UK because he is resident in both countries but is a national of the UK and his centre of vital interests is in the UK. This is driving me bonkers! He was more than 183 days resident in Italy in 2017, his employer was Italian and had no presence in the UK. I would appreciate any help in getting my head round this.