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Where Taxpayers and Advisers Meet

Is the Split Year Treatment applicable on the 2nd year?

nordman
Posts:7
Joined:Thu Dec 24, 2020 3:06 am
Is the Split Year Treatment applicable on the 2nd year?

Postby nordman » Wed Jan 20, 2021 9:21 pm

As part of the Double Treaty Agreement (France / UK), one of the condition that makes me overseas tax resident is that my "center of vital interest" stayed abroad.
If that condition changes mid-year of the 2nd tax year in the UK, shall we consider that change date as the split year date? or shall we go and consider the entire tax year as part of the split year treatment?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Is the Split Year Treatment applicable on the 2nd year?

Postby maths » Thu Jan 21, 2021 1:51 am

You implicit reference to a resolution of dual residence in favour of France means that for the tax year you were resident in the UK under domestic law and at the same time resident in France under their domestic law.

It is therefore necessary to ascertain for that tax year whether the UK tax year could be split under the relevant provisions.The terms of the DTA being irrelevant to ascertaining whether under UK domestic law split year treatment applies.


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