Expatriate Taxation Residence Domicile Moving Overseas Returning to the UK Letting Your Property Capital Gains Tax Tax Advice for Pilots Tax Rates for 2007-8 and 2008-9

Residence

Generally, UK residents are taxed on world-wide income and world-wide Capital Gains.

If you have moved abroad you may be classed as non-resident for tax purposes. As a result, you will be taxed on your income only, and any non-UK income (such as your salary or offshore investment income) will be exempt. You can also be exempt on world-wide Capital Gains subject to certain conditions

This is a complex topic and the Revenue has recently demonstrated stricter enforcement of residence rules. In addition, the 2007 Pre-Budget Report has resulted in the Government confirming that it will ‘introduce changes to the residence rules so that days of arrival in and departure from the UK will count toward establishing residence’.

This will have a huge impact on those living abroad – and means that, from April 2008, expatriates making frequent trips back to the UK will have to carefully plan to ensure their non-resident status is not jeopardised. Expatriates can no longer rely on non-resident status being endorsed purely because they spend less than 91 days in the UK each year. For more information on this important development please click here.