Tax advice for returning Expats
When returning to the UK or moving to the UK, you should take advice early. A key point to determine is when your tax residence in the country you are leaving will cease and when your UK tax residence will commence. Where there is an overlap we can advise on double tax treaties.
Statutory Residence Rules
The statutory residence rules will determine when you become UK tax resident and how you will be treated if you arrive in the UK part way through a tax year. The UK tax year runs from 6th April each year and normally you are treated as being UK tax resident for a whole tax year.
Where certain conditions are satisfied, you may qualify for split year treatment and only become UK tax resident part way through a tax year. Turcan Connell can advise if you qualify for this special treatment.
There may be opportunities to structure assets before becoming UK tax resident so that you are not paying any additional taxes once you are UK tax resident. Advice on structuring assets should be taken before this so that no opportunities are closed off.
For expats returning to the UK, it may be possible to clear any gains on assets you are holding before your return. We can advise on techniques which achieve this while ensuring the assets are retained within family structures.
Returning non-dom – UK domiciles of origins revive
Where a non-domiciliary has a domicile of origin in the UK, for any tax year in which they are UK tax resident, their domicile of origin in the UK would revive, resulting in their worldwide assets being within the scope of UK inheritance tax. Even where a person has never resided in the UK previously, they could still have a domicile of origin in the UK if their parent had left the UK but not acquired a domicile of choice elsewhere by the time they were born. It is important therefore not only to take advice on your own domicile position but that your parents’ position is reviewed as this can impact.
International Pensions and Investments
For expats returning to the UK with international pensions or other investments held internationally, Turcan Connell can advise on the UK treatment of these products and any double tax treaties which may apply.
Advice can also be provided on transferring an international pension to a UK registered pension (if appropriate) and transferring non-UK investment products to recognised UK investment structures. Turcan Connell would be happy to provide such advice.