Are you currently residing in the UK?

 

To determine your residency status for tax purposes in the UK, several factors need consideration. If you spend 183 days or more in the UK within a tax year, you are automatically considered a UK resident. Conversely, if you spend fewer than 183 days in the UK during a tax year and meet certain conditions, you may be considered a non-resident.

Automatic tests are applied in a specific order to ascertain residency status:

    •  If you spend 183 days or more in the UK within a tax year, you’re automatically deemed a UK resident.
    • Alternatively, you’re automatically considered a non-resident if you meet one of three criteria: spending fewer than 16 days in the UK in a tax year, meeting specific conditions for full-time overseas work, or not having been a UK resident in the previous three tax years and spending fewer than 46 days in the UK.
    • Other tests, such as having a UK home for a certain period, working full-time in the UK, or having spent more than 90 days in the UK in previous tax years, may also influence residency status.

If none of the automatic tests apply, ties to the UK, including family ties, accommodation ties, work ties, 90-day ties, and country ties, are considered.

Assuming none of the automatic tests apply, the number of ties determines residency status:

    • 4 ties: 16-45 days spent in the UK in the current tax year.
    • 3 ties: 46-90 days spent in the UK in the current tax year.
    • 2 ties: 91-120 days spent in the UK in the current tax year.
    • 1 tie: Over 120 days spent in the UK in the current tax year.

If neither the automatic tests nor UK ties apply, you’re treated as a non-resident for the tax year.

If you’re leaving or returning to the UK permanently, you may be eligible for split-year treatment for tax purposes, subject to certain conditions.

For detailed guidance on UK residency, refer to RDR3 on the Government website.

Regarding taxation, UK residents are taxed on their worldwide income and capital gains. Non-residents are typically taxed only on income received in the UK, with some exceptions.

Property income, bank interest, and other income arising in the UK may be subject to taxation in the UK or your country of residence, depending on double tax treaties.

Upon leaving the UK, you may be entitled to income tax refunds or may need to declare certain income for tax purposes.

For capital gains on land and buildings, specific tax reporting requirements apply, including online returns and tax payments within 60 days of completion.

Ensure compliance with tax reporting requirements in your country of residence and seek advice from a local tax advisor if necessary.

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