EXPAT RETURNING TO THE UK - TAX RESIDENCY RULES
Im an expat who has lived in Asia for over 20 years and may at some point return to the UK . I own no property in the uk and my family live with me overseas.
I have a question about when exactly you become UK tax resident, and when you need to sell your overseas assets before returning to the UK in order to avoid both UK income and capital gains tax.
First, ive checked the HMRC tests, and this is the situation;-
1. AUTOMATIC TESTS
I dont meet the automatic tests as ive never been tax resident in the UK ever, and have spent less than 90 days in the UK in any of the last 3 years. So according to the flow chart im "non resident for all of the previous 3 years". So we move onto the second criteria ;-
2. SUFFICIENCY TIES TEST - (as ive never been tax resident for any of the previous 3 years, Im covered under 'Inbound" in the table attached)
In this test I believe I have only 1 tie, covered under "accessible UK accommodation" (i assume my mothers house counts as this?). Does my mother also count as a second tie under "UK resident family", I assume not? If not i have only 1 tie. So according to the chart i am tax registered in the UK ONLY AFTER 183 DAYS.
1. If i relocate to the UK, am i tax resident only AFTER 183 days? ie can i relocate to the UK 182 days BEFORE April 6th, sell my overseas assets during this period, and only become registered on the first day of the new financial year, namely April 6th of the new financial year? Is this correct?
2. In the above example would i be liable for UK income or capital gains on my overseas assets in the event I had disposed of my assets during the above 182 days prior to April 6th?
3. If i transfer assets to my foreign wife 182 days before April 6th, is this regarded for tax purposes the exact same as selling the assets as in q1 above?
Thanks in advance everyone!