As you're probably aware, losing your UK resident status can be a very important tax break. If you're non UK resident you are exempt from UK income tax on overseas income and can avoid UK capital gains tax as well.

Actually determining when you are and when you aren't UK resident can therefore have a big impact on your UK tax bill.

This is currently a 'hot topic' with HMRC and they're looking in detail at the nature of many emigrants connections with the UK. The recent (Feb 2010) Court of Appeal decision in the Gaines Cooper saga has reiterated the importance of ensuring there is a distinct break when leaving the UK and avoiding substantial UK connections.

In this section we include all articles concerning non UK residence.

Join up today to read unique tax planning articles and obtain online tax guidance on achieving and using non UK resident status.

New - Free Tax Help for Non UK Residents! Members can access our new Non UK Resident Tax Consultancy Section. This includes detailed scenario based tax planning Q&A's. New Q&A's are to be added to this daily.

Reducing tax for Non UK Residents Ordinary residence in 2010 following the Tucza decision 10/03/2010 Following a request from a member we've looked at the potentially important case of Andreas Tucza, which addresses UK ordinary residence status. Just like the Gaines Cooper and Grace decisions looked at residence status under common law, the Tucza case looks at ordinary residence status following a review of the case law. . . . keep reading What the 2010 Gaines Cooper judgement means for anyone looking to establish non residence. 24/02/2010 Since the judgement on 16 February there's been a lot of press coverage of its impact- but what has actually changed? In this article we look at the impact of the Court of Appeal decision and what it means for current or prospective non UK residents . . . keep reading QC's view on how to establish a company as non resident 22/02/2010 Essential reading for anyone interested in using an offshore company to reduce UK tax. In this article we look at the views of one of the top tax QC's on how to establish an offshore company as non UK resident . . . keep reading Qualifying Recognised Overseas Pension Schemes (QROPS) and investments in UK property 08/02/2010 Following an HMRC amendment in October 2009, this article looks at the UK tax implications of a QROPS investing in UK residential property and why you need be careful as to the location of your QROPS investments. . . . keep reading Tax deduction for travelling expenses if working abroad 22/01/2010 Following a request from a site member we've looked at the tax rules relating to obtaining tax relief for travel expenses for you and your close family if you work abroad. This article looks at exactly when you will qualify for a tax deduction for your travelling costs . . . keep reading Top CGT free countries 20/01/2010 If you want to sell shares in your UK company or UK land and property free of capital gains tax, moving overseas and establishing non UK residence is one of the most effective tax planning options. In this list below we've looked at some of the top international destinations that don't levy CGT. . . . keep reading Top countries of residence for the Rich & Famous If you've ever wondered where the Rich & Famous base themselves to avoid tax you'll find this fascinating reading. In this article we look at some of the top tax haven destinations for celebrities and why they're so attractive . . . keep reading Making a 'distinct break' from the UK to establish non UK residence 04/01/2010 One of the key outcomes of the recent High Court and Court of Appeal decisions on residence is that they reiterate that a prospective emigrant should look to ensure there is a 'distinct break' with the UK. This is essential to establish non UK residence. In this article we look at how this could be achieved in practice. . . . keep reading Trading in the UK with a UK company/LLP and how to minimise tax 18/12/2009 If you're a non UK resident looking to carry out any business activities in the UK you should carefully consider whether there could be a charge to UK tax, and if so how this can be mitigated. In this article we look at the dangers of a UK permanent establishment, how this can be avoided and how a UK company or LLP could be used . . . keep reading How non residents can eliminate income tax on UK rental income 14/12/2009 If you're non UK resident and rent out UK property you'll be subject to UK income tax on the rental income. This will fall within the non residents landlord scheme and would initially be subject to basic rate income tax at source for most landlords. In this article we look at the techniques non residents can apply to reduce UK income tax on the rental profits to nil . . . keep reading Employees working overseas and UK tax 07/12/2009 If you've been posted abroad of key importance will be your UK tax status. In this article we look at the UK tax issues including how both UK and overseas earnings are taxed, how to calculate the taxable amount and how to minimise it . . . keep reading The first Court of Appeal decision on residence in 40 years 27/11/2009 This recent Court of Appeal decision on UK tax residence was the first case on residence considered by the Court of Appeal in 40 years. In this article we've looked at some of the key findings and how this may impact on you establishing non UK residence. . . . keep reading Should you sell UK property as a non resident or after you return to the UK? 11/05/2009 If you're non UK resident and considering a return to the UK at some point in the future you may be evaluating whether you should sell UK property before or after a return to the UK. In this article we look at the tax rules for a disposal both before and after a return to the UK and assess when you should sell to minimise tax . . . keep reading UK Ordinary residence in 2009 23/10/2009 Although an individuals 'residence' status is of key importance, for tax purposes 'ordinary residence' can occasionally be of crucial importance. In this article we look at when a visitor to the UK can be classed as UK ordinarily resident and compare the different approaches of HMRC and the Courts . . . keep reading Interesting case on non UK residence that was recently reported 21/10/2009 This is an interesting case on residence that has been recently reported. It concerns an airline pilot and whether he was UK resident after he'd made an attempt to sever ties with the UK. Many of the issues raised are relevant for other prospective emigrants . . . keep reading Establishing non residence when working abroad -- what if you return early? 19/10/2009 If you're leaving the UK to work overseas you would often look to establish non UK residence from the date of your departure to the date of your return under the special provisions outlined in HMRC6.One of the requirements is that the employment is full time and lasts at least a complete tax year. In this article we look at what happens if you return early . . . keep reading Latest August 2009 case on central management & control 12/10/2009 In this article we look at the recent August 2009 decision in relation to the central management and control of an offshore company. This case essentially reinforces a lot of the issues which we've previously covered in our company residence articles, and therefore provides a useful summary of the key points. . . . keep reading Is it worthwhile claiming the personal allowance as a non resident? 05/10/2009 The ability of non residents to claim the personal allowance will be significantly reduced as from April 2010. However, even where it can still be claimed is it necessarily worth claiming it? In this article we look at why non residents may not want to claim the personal allowance anyway. . . . keep reading Collecting tax from non residents trading in the UK 30/09/2009 This is an issue that is commonly raised. Just because a non resident is trading in the UK does this necessarily mean that HMRC can collect the tax? If there are no or only limited provisions to actually collect the tax this would in practice restrict the actual UK liability. In this article we look at how HMRC can collect tax from non residents and when the provisions won't apply . . . keep reading Questions HMRC may ask when assessing the residence of an offshore company 28/08/2009 If you're planning on setting up an offshore company to avoid UK corporation tax on the profits of a UK trade or capital gains, one of the difficulties is ensuring that the central management and control is based overseas. In this article we look at some of the questions that HMRC may raise in an enquiry into the residence of an offshore company . . . keep reading When HMRC can challenge disposals after you've left the UK 21/08/2009 If you're planning to leave the UK to avoid CGT ensuring that you correctly time any disposal is crucial. The benefit of course is that individuals who are non UK resident and non UK ordinarily resident are usually exempt from UK CGT. In this article we look at the importance of timing and the main occasions when HMRC can argue there is still a UK CGT charge even though you sold as a non UK resident . . . keep reading Using a UK double tax treaty to work in the UK free of UK income tax 14/08/2009 The general rule is that if you have a UK employment the earnings from that employment are subject to UK income tax. This applies irrespective of your residence status. However, this is not the full story, as the terms of a UK double tax treaty will impact on this. In many cases these treaties can be used to exempt any UK salary from UK income tax. In this article we take a detailed look at the use of double tax treaties to avoid UK income tax on UK employment income . . . keep reading Using a double tax treaty to provide services in the UK tax efficiently 24/07/2009 If you're looking at providing services from abroad to customers in the UK, it would be advisable to pay careful attention to the terms of any double tax treaty. In this article we look at how using double tax treaties can significantly reduce your UK tax liability . . . keep reading The new E borders programme and keeping a track on UK visits for residence purposes The new e borders programme to be introduced over the next couple of years looks to ensure that information on anyone travelling to or from the UK is retained by the UK border authorities and shared with HMRC. This article looks at the impact of the information in terms of establishing non UK residence. . . . keep reading Tax analysis of Northern Cyprus v Southern Cyprus 26/06/2009 Following a post on one of our forums we've looked in further detail at the tax position of Southern Cyprus compared with Northern Cyprus. This article compares the income tax, capital gains tax and inheritance implications of UK residents emigrating to Northern Cyprus ('TRNC') as opposed to Southern Cyprus . . . keep reading Changes to the personal allowance for non residents from April 2010 10/06/2009 The UK personal allowance (currently £6,475 for most people) exempts a specific amount of income from the charge to income tax. Non UK residents are still charged to UK tax on UK income and therefore being entitled to claim the UK personal allowance can be very beneficial. There were a number of changes to the ability of non residents to claim the personal allowance which were announced in the 2009 Budget. This article looks in detail at the effect of the changes . . . keep reading Non residence after the new guidance in HMRC 6 The Revenue has published new guidance for anyone considering establishing non UK residence, in HMRC 6. The previous guidance (which was in IR20) has been withdrawn. In this article we look at the changes in the new and old guidance for anyone looking to move abroad and establish non UK residence . . . keep reading Traders moving overseas and NIC 15/05/2009 We were asked about this in a post on our forum so we've researched the position in detail. This article looks at the class 2 and class 4 NIC position for anyone self employed moving overseas . . . keep reading Non resident partners and UK tax 01/04/2009 Following a post on our forum we've looked at the tax position of non resident partners. This article looks at how non UK resident partners are taxed in the UK and how they could structure their affairs to reduce UK tax . . . keep reading Directors, UK tax & double tax treaties 25/03/2009 Directors moving abroad should ensure that they carefully consider their tax status. The terms of double tax treaties in particular can have a big impact on how directors are taxed. This article looks at how double tax treaties impact on directors based overseas . . . keep reading More

Latest Non Resident Tax Questions SDLT/UK property in Overseas Company Offshore tax advice Tax assessment after emigration Long term resident Trading foreign exchange - using an LLP? Gift by a non-resident CGT on properties Return to UK - Minimizing tax on lump sums Extracting cash in company tax efficiently Non-resident trust Belgium contract Offshore/Belize company - various tax questions Non dom becoming non resident to avoid CGT Transferring Assets to Offshore Company Tax residency Tax structuring for overseas business EU or Limited Company? Move to Gibraltar/Portugal and UK tax Director benefit in kind if non resident Avoid CGT on shares by moving to Gibraltar Director moving overseas and UK tax UK CGT and IHT on transfer of property to Son Offshore company & Non-dom wife Remittances, nominated income and 'alienation' rule Non resident and living in USA Offshore Companies Non-resident and not-ordinarily resident Perpetual Tourist Non-resident trust? Offshore company More

Tax Articles on Non UK Resident Status

We have a lot of tax articles covering non UK resident issues in our Emigration section. Here's a selection: