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

Returning to UK and leaving again.

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

Re: Returning to UK and leaving again.

Postby maths » Sat Apr 06, 2019 10:26 pm

You appear to have either ignored my response or do not understand the references I made to the various Cases (contained in the SRT legislation).

In your latest post you ask:
Also, seeing as one becomes non-resident when they leave the UK to live and work full-time overseas, haven't I become non-resident in the UK for tax purposes again? Is this correct?
18/19 is a year of residence and it is this year that may qualify as a split year.

As I indicated in my earlier post it seems to me that only Case 4 is capable of satisfaction.

With respect to your above query, Case 1 which deals with an individual who leaves the UK to work full-time overseas cannot be satisfied by you.

darthblingbling
Posts: 222
Joined: Wed Aug 02, 2017 9:09 pm

Re: Returning to UK and leaving again.

Postby darthblingbling » Sun Apr 07, 2019 10:58 am

2017/18 you are non resident
2018/19 you are resident
2019/20 you are non resident

You can only claim split year in a year of residency

Out of the 8 cases, only Case 4 will likely be appliciable.

Therefore for 2018/19 you will be non resident from the beginning of the tax year until the day before you begin to ONLY have a UK home. You will then be resident until the end of the tax year (5 April 2019)

During this residency period your worldwide income will be taxable in the UK.

Moving overseas to work full time will sometimes split the year, but in your circumstances will not be appliciable. Why? It's just the domestic law of the UK (read up case 1 for split year treatment).

You may however get treaty relief, but only if you are deemed to be tax resident in China to which this forum will be unlikely to provide assistance on.

bubu
Posts: 60
Joined: Wed Aug 06, 2008 3:24 pm

Re: Returning to UK and leaving again.

Postby bubu » Wed Apr 10, 2019 8:59 am

I appreciate the replies maths and darthblingbling.

I was non-resident in the UK in 17/18 as I worked overseas full-time, and I returned to the UK in May '18 which is tax year 18/19. I worked in China. So how is it that I can claim split year for 17/18, if I was non-resident in 17/18? I would have thought that I could claim split year in 18/19 as I returned to the UK in May 2018? I thought split year is for the year one returns to the UK. Is that right?

I understand that I cannot claim for the split-year for leaving the UK in December 2018, but my question is, if I remain working overseas until April 6th 2020, then wouldn't I have become non-resident for the period December 2018 to April 6th 2020, so therefore my income abroad would not be liable to be taxed in the UK? Is this correct?

Re: tax liability on my overseas income prior to May 2018, I don't presume I would be liable to pay UK tax seeing as I was non-resident for tax purposes for over 6 years until May 2018? Is this also correct?

Thank you in advance for the replies which are very useful.

bubu
Posts: 60
Joined: Wed Aug 06, 2008 3:24 pm

Re: Returning to UK and leaving again.

Postby bubu » Wed Apr 10, 2019 9:15 am

I have only just seen your most recent posts maths and darthblingbling from Saturday and Sunday respectively.

Thanks very much.

bubu
Posts: 60
Joined: Wed Aug 06, 2008 3:24 pm

Re: Returning to UK and leaving again.

Postby bubu » Thu Apr 11, 2019 7:10 am

Re: 2018/2019, what if I stayed in the UK for over say 150 days, staying with my parents in the UK, not working in the UK at all during hat time, but I was also still paying rent on an apartment in the city in China, which is where I have come back to? Would that make a difference to my situation?

What happens if I do not stay until beyond April 6th 2020, and return to the UK say in September 2019? Would I get split-year treatment again for April 6th 2019 to say September 6th 2019, for the time that I was overseas, I would I have needed to be a non-resident for a complete tax year before being able to claim split-year treatment?

Also, if my rental profit on my property in the UK was say £5000 per year, that leaves me with almost £7000 remainng tax free allowance. If my earnings in China from December 2018 to April 5th 2019 are taxabale in the UK, wouldn't it come under the tax free allowance of which I would have 7k remaining, so therefore if my income for those 4 months in China were under £7000, then I would not need to pay any tax in the UK? Is that right?

I appreciate the replies and thank you in advance. Sorry for asking more questions!

Thank you.

darthblingbling
Posts: 222
Joined: Wed Aug 02, 2017 9:09 pm

Re: Returning to UK and leaving again.

Postby darthblingbling » Fri Apr 12, 2019 8:07 am

Look at the UK China tax treaty and your Chinese tax residency. You may be worrying about nothing.

But you may want to get paid professional advice.

However, if your total taxable income for 2018/19 is under the personal allowance, and you're entitled to a personal allowance then yes you likely won't have any UK liability.

In addition you'd probably get a foreign tax credit for Chinese tax anyway as the work income will be Chinese sourced.

bubu
Posts: 60
Joined: Wed Aug 06, 2008 3:24 pm

Re: Returning to UK and leaving again.

Postby bubu » Sat Apr 13, 2019 7:01 am

Much appreciated darthblingbling.

Actually, I teach in China so my earnings are in no means ample enough to need to pay that much tax I would presume, particularly from December 2018 to April 5th 2019. As you said it would fall within y annual tax allowance anyway.

What does payment on account mean? I am hoping that my declared China income from December 2018 to April 5th 2019 can just fall within my UK annual allowance, and I wouldn't want to be asked to have to make payments on account. Especially as I am non-resident again from December 2018 and for the foreseeable future...

I have another question. Actually I resigned from my previous position on March 31st 2018 (tax year 2017/2018) but I returned to the UK in May 2018. I presume the date in focus would be May 2018, and not March 31st, is that correct? I wouldn't want the end of my employment date in March to mean that I became UK resident again in 2017/2018. It is much better if my UK residency status for split-year treatment was from May 2018? Would that be correct?

Also, because I am now back teaching in China, would my non-UK residency mean I wouldn't have to pay UK tax on my foreign earnings as long as I remain overseas until at least April 6th 2020? Is that right? I ask because I have just read something about "living temporarily abroad" and also that these days, you need to live/work overseas for 5 years and a day to be fully non-resident, or something like that. However, I have hardly been living in the UK except from May 2018 to December 2018. I read that the rules changed in 2013 or thereabouts, but I had thought that just 1 full tax year as a non-resident would mean I wouldn't need to pay UK tax on my foreign income at all. Is this still the case?

Many thanks.

darthblingbling
Posts: 222
Joined: Wed Aug 02, 2017 9:09 pm

Re: Returning to UK and leaving again.

Postby darthblingbling » Sat Apr 13, 2019 8:34 am

You sound like a CTA question.

In order:
Payment on accounts are payments towards the following tax year's liability. Without going into huge details, this will not likely affect you.

You can't have split year from March 2018 as you were non resident for that tax year. So don't worry.

Temporary non resident rules do not apply to employment income. Also it wouldn't apply to you anyway as I believe you need to have been UK resident for 4 of the last 7 years since your departure for the temp non residency rules kick in


Return to “International Tax”