Nick10x

Hi,
My family and I are looking to move back to the UK from Dubai.
We have been here for 6 years and have bought a property here. We also have not filled in the Non Dom document from the UK.
We wanted to know our options of taking any savings back to the UK and any profit we make from our property investment.

Also, if we received money from the UK to pay for the house here, and send the same amount back - am I right in assuming this is not taxable?

Any advice would be helpful.

Millhouse

you're not a non-dom, you're non-resident. I suggest you get proper advice...

Nick10x

Many thanks Millhouse - I am speaking to a financial advisor this week, however would be encouraged to hear any thoughts or insights to how it generally works when returning to the UK.
I have not declared myself as a non-resident but will do so if needed. thanks anyway.

jam25mack

You are automatically declared as non-res after a certain period out of the UK.

Nick10x

What does it mean to be a non-res? sorry, must be a silly question.

Millhouse

mission will be able to explain

Bahtatboy

Not sure how you've managed to be (t)here 6 years without understanding the basics of non-residence...

Anyhow, as already suggested, talk to an FA. Just make sure it's not one who knows FA about tax, which is most of them... If he wears white socks, drives a BMW and calls you mate (or looks/sounds like he would), run. Far and quickly.

Millhouse

we only export our finest. The 2011 vintage were particularly special.

Nick10x

I didn't realize I needed to understand the basics of being a non resident if I wanted to move away from the UK for a short period of time! i'll make sure all expats are aware of this pre-requisite!

hnd

" ... a short period of time". You consider six years a short period of time?

So, you've been filing tax returns, have you?

mission

bog off

BritInParis

Filing your P85 now would be helpful if you didn't do so when you left.

https://www.gov.uk/tax-right-retire-abroad-return-to-uk

Johnnyboy11

My suggestions:

(i) Be extremely careful dealing with any "Financial Advisor" in the UAE, they are not regulated and there are many salespeople and sharks around with one objective, parting you from your assets.

(ii) Pay for specialist tax advice from someone experienced in dealing with UK expats. It is extremely important that both you and your wife/ partner determine your individual UK Residency status for each year that you were overseas. Do this BEFORE you return to the UK. You may have become and have remained UK Non-Resident (i.e. no UK Income Tax or NI liability on your worldwide earnings) either by passing the Automatic Overseas Test or by limiting your Connecting Factors and days spent visiting or working in the UK. Good flowchart here.

(iii) Also watch your UK Capital Gains tax liability, which will apply to any disposals of your worldwide assets, including your Dubai property, as soon as you arrive in the UK. You will probably be advised to sell any assets before you arrive back in the UK, in order to crystalise any gains in the UAE.

(iv) If you plan to buy a property in the UK, before you sell the Dubai property, then you will have to pay an extra 3% Stamp Duty on the purchase price. There is a way of claiming this back, if your UK property becomes your primary residence and you sell the Dubai property withing a given time period (3 years I think).

As said before, get specialist advice, it will likely pay for itself many times over in tax savings.

Johnnyboy11

Forgot one more point:

(v) Once you repatriate to the UK, you become UK Resident for Income Tax and NI purposes, which applies to all your worldwide earnings. You can't move money offshore to avoid this.

Sabi Star

As already mentioned you need to take advice from an accountant in UK - find one that knows about your particular situation - many of them are not experienced in ''off shore, non resident'' details. Anyone in Dubai is not responsible for what they tell you i.e. you cannot sue them later for bad advice. Also if you have to sign any contract with an accountant regarding what fee you will pay them make sure it also says how long it will take for them to do the work - if any.