Fiscal nomad and UK tax - USERNAME: anilspatel - 09/08/2017

Tax Question:

Hi I left UK on 20th March 2016 for Dubai where I have obtained a Residence Visa through my UAE Company based in a Free Zone Area ( RAK) . Initially I wanted to set up a business but its not worked out and I do not work in Dubai . I travel a lot but return to Dubai every 6 months to retain my Residence Visa . When in Dubai I stay in a Hotel Apartment which I pay for the days I stay there.

I have made sure that I do not exceed the number of days in order not become a Resident of the visiting countries

I have 3 connections with the UK under SRT rules

-I have a UK home ( I also have a home in India where I spend more time than in UK home ) _Stayed in UK more than 90 days in last 3 years _My wife is in UK ( to look after elderly mother)

I have businesses in UK but do not work or spend perhaps 2 hours in a year ( my son runs the businesses)

Last Tax year (2016/17) I spent 40 days in UK ( I have kept Boarding Passes/E tickets as proof )

My question is I am not a Tax Resident in any country but sinceI have a Dubai Residence Visa do I say to HMRC that my Hotel Apartment in Dubai is my residence in Dubai ? Apparently to be a Tax Resident in Dubai one has to stay at least 6 months a year this I will be unable to do as its just too hot in summer and I would rather travel elsewhere How will the HMRC view my position as a fiscal nomad but with Dubai Residence Visa but no permanent address in Dubai but not UK resident under SRT? Thank you

Answer:

Under the SRT the key issue is that you meet the day requirements based on your ties. If you don't have a foreign tax residence that wouldnt impact on your UK tax residence status.