For expatriates from the UK living around the world, or families with one or more members living abroad, Turcan Connell provides ongoing advice on UK related issues, such as assets and property in the UK, tax advice, the completion of UK tax returns (where required) and non-resident landlord returns where you have rental properties in the UK.
Capital gains tax and UK residential property
The extension of capital gains tax to non-UK residents selling UK residential property has affected many expats. Expats with more than one residential property in the UK will be particularly affected, including those with buy to let properties, and should take advice.
A Non-Resident Capital Gains Tax Return (NRCGT return) must be filed following any disposal of UK residential property by a non-UK resident and there are strict time limits for filing NRCGT returns or else penalties and interest apply. Even where a non-UK resident files an annual UK tax return they must still file an NRCGT return. Turcan Connell’s tax compliance team can assist you in completing your NRCGT return and filing it with HM Revenue & Customs.
Where you own UK residential property and are likely to sell it after your return to the UK, then it will likely be attractive to take action ahead of your return to the UK to eliminate the historic gains. Turcan Connell can review your capital gains position and advise on your personal circumstances and if any tax reliefs would be available to you.
Non-UK resident status
The statutory residence rules set out the permitted days in the UK before becoming UK tax resident. In certain circumstances, an expat may find themselves automatically UK tax resident especially if they have homes both in the UK and overseas, and have an interval between selling one overseas home and acquiring a replacement. Turcan Connell can advise on the application of the statutory residence rules to your particular circumstances.
UK tax returns and non-resident landlord returns
Where you have rental income from UK property you will be required to file a UK tax return. Turcan Connell is a registered agent under the non-resident landlord scheme and files tax returns on behalf of non-UK resident clients.
Unless you are enrolled in the non-resident landlord scheme your tenants are required to deduct and withhold tax on the rental income due to you. Compliance with the non-resident landlord scheme enables the rental income to be paid gross and expenses to be deducted before settling any tax liability instead of the tax being paid first and a repayment claim being made to recover tax paid on allowable expenses.
International Wills and succession advice
If you are originally from the UK and plan to return to the UK or are uncertain about your future plans, succession to your moveable assets will still be governed by your home jurisdiction and you should have a Will prepared under Scots law or English law as appropriate. Depending on where your assets are located in the world, it may be practical to have additional Wills prepared covering assets in particular jurisdictions or even to structure assets so that they are not directly held in certain jurisdictions. Turcan Connell's specialist legal team can advise on the Wills you should have in place and planning arrangements which are appropriate for you.
Inheritance tax advice for expats
Even if you have been non-UK resident for many years, UK inheritance tax could still apply to your worldwide assets on your death. In addition to inheritance tax, local death duties may also apply. Turcan Connell provides advice on domicile, the application of UK inheritance tax to your assets and the availability of relief under double tax treaties where both HM Revenue & Customs and another tax authority seek tax on your assets. Lifetime planning will be appropriate for many clients in this position and Turcan Connell is familiar with assisting clients located around the world.
Asset protection trusts for expats
For expats living in unstable countries or in jurisdictions with forced succession rules, Turcan Connell can help by advising on and implementing asset holding structures in stable jurisdictions to guard against these risks.
For further information on expat tax advice, contact a member of the team today.