Littlemisssuntan

Hoping someone here can give me a bit of advice! Moving back to the UK in Sept and want to know about tax implications as the Internet is driving me nuts!
If we move back before the end of the tax year will we have to pay tax on what my husband has earned in Dubai? If so what percentage? Will we have to pay tax on savings accrued?
Thanks in advance!

nun

You need to determine if you qualify for split year treatment.

http://tools.hmrc.gov.uk/rift/screen...ary?user=guest

Littlemisssuntan

Yes, I will... So what does that mean for tax? Honestly I'm going grey trying to work this out!

Editha

I think the HMRC site states it quite simply:

Editha

How long were you in Dubai? If it was for more than a year, you haven't got anything to worry about.

Littlemisssuntan

Thanks Editha
Yes, 3 years but will be returning half way through the tax year. What I don't understand and getting different info from the Internet is whether we have to pay tax on his earnings or just what's in the bank account.

Editha

You won't pay tax on any of it -- if it was earned before you came back and resumed residency.

Littlemisssuntan

Thanks Editha. It seemed a bit more complicated than that! That's great.

TopNik

Hello Littlemisssuntan,

For your information, split year rules include residence conditions for the tax year after the tax year of your return to the UK also.

If these conditions are not met during the following tax year you will not be entitled to split year treatment and your earnings prior to your return to the UK will be liable for UK income tax.

Editha

Would you explain what the conditions that you are referring to are? Surely, the only condition is that she remains resident in the UK?

Littlemisssuntan

Thanks TopNik, I managed to get some legal advice and it was as complicated as I first thought.. Depends on how long you have lived abroad, any ties you may have had to UK whilst abroad, how long you intend to be back etc etc...

Pistolpete2

You have to have your ONLY home in the UK.

If you start to have A home in the UK (in other words you have one somewhere else as well which is available to use), you must be tax resident in the following year as well, and it must not be a split year (treatment one).

Important for those who turn out to NOT like their return and want to bail out.

The conditions are actually more complex than that but that's basically it.

robin1234

Legal advisors aren't going to make a living if they make things sound simple.

Littlemisssuntan

True but as I paid nothing for the advice and it was a lot more indepth than just a straight forward yes/no I'm glad I got clarification!

Pulaski

On that point Karl Marx was right.