Cross Border Tax - Personal Tax Planning

France Germany Hungary Italy Russia UK

Working or
travelling abroad

If you are planning to re-locate overseas on an international posting, the tax issues can be numerous and complex and making sure you have a very clear understanding of your tax obligations is absolutely essential.

If, on the other hand, you have been working overseas and are planning on returning to the UK it’s important that you tie up all the loose ends and deal with your international tax affairs first, and then secondly, prepare your tax obligations in the UK.

With our international expertise, we can offer specialist support and tax planning for:

  • UK residents
  • Non-domiciled ex-pats living in the UK
  • Non-UK residents moving to the UK
  • Non-UK residents setting up a business in the UK
  • British ex-pats living abroad
  • Virtual UK businesses.

If you would like to know in more detail about our International Personal Tax Planning services, please get in touch with Alan Rajah or Elena Kudryakova on +44 (0)20 8861 7575.

If you prefer, please click on the enquiry form on the right and we’ll call you straight back and answer any questions you may have.

Coming (or coming back) to the UK to work?

If you have been living or working overseas and are planning on coming/returning to the UK, it is important that you tie up all the loose ends and deal with your international tax affairs first, and then secondly, prepare for your tax obligations in the UK.

Coming to the UK lends much weight to the well known saying “Failing to plan is planning to fail”. This is probably a once-in-a-lifetime opportunity to get the tax planning right, before you arrive in the UK. Once you arrive you may well unintentionally give yourself a tax liability that could have been avoided.

With our international expertise, we can offer specialist support and cross-border tax planning for:

  • UK residents
  • Non-domiciled ex-pats living in the UK
  • Non-UK residents moving to the UK
  • Non-UK residents setting up a business in the UK
  • British ex-pats living abroad

Residence and Domicile – Recent developments

Residence

The new “Statutory Residence Test” (“SRT”) came into effect on 6th April 2013. This determines with greater certainty than before whether an individual is UK tax resident or not. There is an “Automatic Overseas” test, an “Automatic Residence” test and if neither is conclusive, a “Sufficient Ties” test. As tax residence is critical in determining both your UK and overseas tax obligations, it is vital to know whether you are UK (or overseas) tax resident and, for people coming/returning to the UK, when the period of UK tax residence commences.

Domicile

Individuals who are UK residents but non-domicile may exercise the option to be taxed on the “remittance basis”. However, once they have been tax resident for 7 out of the last 9 years, they must pay the annual “Remittance Basis Charge” or “RBC” of £30,000 for this privilege. The RBC increases to £60,000 if the period of UK residence is more than 12 out of 14 years, and to £90,000 if more than 17 out of 20 years.

There are two exemptions from liability to the RBC. Firstly, there is an annual upper limit of £2,000 of unremitted foreign income and gains per taxpayer. Secondly, remitted incomes or gains invested in a qualifying UK trading company are exempt from both the RBC and from UK income tax and capital gains tax. There are conditions attaching.

Changed Ahead

Consultations are currently in progress regarding certain important changes to our domicile laws and to the remittance basis. Advice should be sought on the possible future impact of these.

Re-locating or planning to work overseas?

If you are planning to re-locate overseas, either on a time-defined international employment posting or to live longer-term, the tax issues can be numerous and complex. Making sure you have very velar understanding of your tax obligations is absolutely essential.

There is a significant amount of “pre-move” tax planning that should be considered to mitigate both your UK and foreign taxes. We work closely with international associates in many countries via our membership of GGI.

Follow us on Twitter

Sage Logo Xero Logo St Luke's Logo Meningitis Logo BNI Logo Geneva Group International ICAEW members in Harrow, Middlesex
Copyright

© 2018 Lawrence Grant. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
+44 (0)20 8861 7575

Quick links

Contact us | Website terms of use | Site map | Accessibility | Disclaimer | Help |

Address
2nd Floor, Hygeia House, 66 College Road, Harrow, Middlesex HA1 1BE

We are a member firm of the Institute of Chartered Accountants of England & Wales (ICAEW). Registered to carry on audit work in the UK and Ireland. Our Insurer is Manchester Underwriting Management, Centennium Court/East St, Chesham HP5 1DG (worldwide, excluding North America). Also an independent member of GGI, a multidisciplinary worldwide association of accountants, tax consultants & solicitors.