Victor Meldrew

Good Morning,

I have put a similar thread on the Middle East forum, but hoping it's OK to include here to try and get a different perspective.

We have decided to return to the UK this year after 14 years overseas, and need clarification regards the split tax year. The key details are:

1) I have been non-resident/working overseas in the Middle East continuously since September 1st 2001
2) I will be flying into UK on 3rd July 2015
3) My work contract does not end until 31st August 2015 (I am a teacher, so July/August are Summer holidays!). I don't think this makes a difference as I think my residency will begin at the point I return,, but wanted to check.
4) I will be sending my final 3 months salary - for June/July/August - plus my gratuity, to the UK around mid June, so all of my final Dubai salary will arrive in UK before I have returned.

My understanding is:
1) All of my UAE income including gratuity will be free from an income or capital gains tax
2) I will only be taxed on income which I gain after my return on 3rd July
3) I have a house in UK where 2 lodgers live full time. I pay the council tax. I visit the house during holidays, but not longer than total 80 days each year, often 70 or less.

Is anybody familiar with the above? Meow (an IFA/contributor on the ME forum) gave me some useful advice on this about 3 years ago, but I am not sure if things have changed since then. I have asked my friend Google, but want to double check.

Thanks for any help or advice

nun

I think you'll qualify for split tax treatment....FYI there is an HMRC residency tool to help you

HM Revenue & Customs: Service unavailable

The wages you'll get for a contract overseas after you move back to the UK is interesting. As your contract runs until August my opinion would be that you are doing the work (in your case school holidays) while in the UK and thus receiving foreign wage income, there might be UK NI and tax due on the wages between you becoming UK resident and the end of your contract. That's just my opinion, I have no experience of such a situation

Pistolpete2

The rules all changed with effect from 6th April 2013 when the Statutory Residence Test came into effect - as nun reminded me quite a while back.

This means that split-year treatment and its time-frame depends upon certain circumstances such as whether you are returning to work, whether you have ties which would include a property which you could use as your home and when exactly you move into a property which you could call home.

This means, amongst many other things, that your arrival date does not necessarily become the date at which you become tax resident.

There are examples which you could consider/work-through to suit your personal predicament in this delightful document which I have been struggling with myself in order to map out my future as a tax resident or not beyond my initial stay here in the UK. I have used some professional advice too on timings, because like you, I have had concerns about capital gains tax.

https://www.gov.uk/government/public...dence-test-srt