This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

No-residency and split year treatment

bubu
Posts: 63
Joined: Wed Aug 06, 2008 3:24 pm

No-residency and split year treatment

Postby bubu » Wed Apr 03, 2019 4:54 pm

I moved to Asia to work full-time in 2012 and when my employment ended at the end of March 2018, I re-entered to UK in May 2018. I was employed by an employer in Asia. Due to renting a property in the UK for over 15 years, I complete tax returns. I left the UK to work full-time in Asia again in December 2018 and am oversea now.

My questions is about the split year treatment. As I was non-resident since January 2012, a) would I need to pay tax on my foreign earnings and b) what should I put for split-year - the date I re-entered the UK in May 2018, or the date I departed the UK again in December 2018? Or does split year just mean for the time I became resident again? I earned no money overseas from April 6th 2018 as I quit my previous job in Asia in late March, before returning in May. However, I left the UK to live and work abroad again in December 2018 and am wondering about the 2018/2109 tax return. I was in the UK for over 183 days but my intention was always to live and work abroad again. Does intention count for anything, based on my past non-resident history?

Many thanks.

maths
Posts: 7528
Joined: Wed Aug 06, 2008 3:25 pm

Re: No-residency and split year treatment

Postby maths » Wed Apr 03, 2019 7:32 pm

I assume you were non-resident for tax year 17/18.

For the tax year 18/19 you were resident.

18/19 is split tax year if any of the Cases 4 to 8 are satisfied.

None of Cases 5, 6, 7 or 8 is satisfied.

If Case 4 is satisfied then 17/18 is a split year; if not, 17/18 does not qualify as a split year.

bubu
Posts: 63
Joined: Wed Aug 06, 2008 3:24 pm

Re: No-residency and split year treatment

Postby bubu » Thu Apr 04, 2019 9:16 am

Thank you for your input. It is very confusing. Surely I was non-resident for 17/18 as I returned to the UK in May 2018. Right?

I would like to clarify if would I owe UK tax on any of my overseas income considering that I was non-resident since 2012?

Furthermore, I stayed in the UK for over 183, but did not work as I had intended to return overseas to work full-time again, which is what I have been doing since I left the UK again in December 2018.

If I stay overseas working full-time until beyond April 6th 2020, does it mean I am non-resident again from December 2018 and would not need to pay UK taxes on my overseas income for the period December 2018 to April 6th 2020? Can you become resident in the UK and then non-resident again in the same tax year?


Thank you.


Return to “International Tax”