Tax Questions

This is a question which often comes up, perhaps unsurprisingly as domicile is a very British concept and is not recognised by most of the world.

For UK tax purposes, residence and domicile are two very different concepts but both have a big impact on your tax position in the UK.

If a non-UK resident rents out their UK home, or receives rental income from any other property in the UK whilst living overseas, they will be required to register as a non-resident landlord with HMRC in order to get the UK rental income paid to them without 20% tax being withheld at source from the gross rents by the tenants/letting agents.

There are a number of administrative matters which UK expats and others need to be taken care of in connection with a move to or from the UK. These include:

UK expats and other non-UK residents are, generally, not liable to UK capital gains tax (CGT), even on disposals of assets situated in the UK. However, there are some exceptions to this general rule, for example in the case of disposals by individuals who are temporarily non-UK resident.

Some non-UK residents assume that they should continue paying UK tax on their UK pensions even after they leave the UK but this isn’t always the case as their country of residence may have the primary taxing right over the income source.

UK residents are, generally, liable to UK tax on their worldwide income and gains. Whereas, long-term non-UK residents are, generally, only subject to UK tax on their UK source income, plus on taxable gains from the disposal of certain UK assets, including residential property.

Under the SRT, you are normally either UK resident or non-UK resident for a full tax year (which runs from 6th April to 5th April) and at all times in that tax year.

Donating to UK registered charities through gift aid means that the charity can reclaim tax from HMRC. For every £100 given, they can claim back an extra £25!

When you pay into a registered UK pension scheme, you will receive tax relief. Tax relief will be given in one of two ways; depending on whether you are paying into a personal pension scheme or a workplace pension under a net pay arrangement.

As part of our tax return service, we will point out the planning opportunities available to make sure you take advantage of all relevant reliefs and that you pay the minimum amount of tax, required by law.

With tax rules changing so frequently and HMRC paying closer scrutiny to individuals’ tax affairs than ever before, it’s no wonder that completing UK tax returns can cause a lot of stress each year.