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UK Tax on emigrating

UK Tax on emigrating

Old Jan 25th 2008, 12:25 pm
  #1  
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Default UK Tax on emigrating

What is the procedure of notifying the UK government you are leaving the country and ensuring I dont pay UK tax on any money I have in savings (our our house sale) over here?

Is it as easy as making a phonecall or do I have to complete forms and stuff?
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Old Jan 25th 2008, 12:36 pm
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Default Re: UK Tax on emigrating

Originally Posted by ianhutch1
What is the procedure of notifying the UK government you are leaving the country and ensuring I dont pay UK tax on any money I have in savings (our our house sale) over here?

Is it as easy as making a phonecall or do I have to complete forms and stuff?
You will only need to pay tax in one country due to the 'double taxation' agreement with Australia.

To ensure this I believe you have to get a form from the tax office but can't remember it's number.

THis has cropped up before so it may be worth trying a search.

G
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Old Jan 25th 2008, 12:48 pm
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Default Re: UK Tax on emigrating

Originally Posted by Grayling
You will only need to pay tax in one country due to the 'double taxation' agreement with Australia.

To ensure this I believe you have to get a form from the tax office but can't remember it's number.

THis has cropped up before so it may be worth trying a search.

G
P85 will sort out any tax you are owed on leaving the country, and ensure that the IR know that you've left
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Old Jan 25th 2008, 12:59 pm
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Default Re: UK Tax on emigrating

Originally Posted by Pollyana
P85 will sort out any tax you are owed on leaving the country, and ensure that the IR know that you've left
I think the OP is trying to ensure he is not taxed in the UK on interest on savings left in the UK.

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Old Jan 25th 2008, 1:47 pm
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Default Re: UK Tax on emigrating

Originally Posted by Pollyana
P85 will sort out any tax you are owed on leaving the country, and ensure that the IR know that you've left
Thanks i'll check it out

Originally Posted by Grayling
I think the OP is trying to ensure he is not taxed in the UK on interest on savings left in the UK.

G
True, wont this be covered by a P85?
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Old Jan 25th 2008, 6:27 pm
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Default Re: UK Tax on emigrating

you can declare yourself as a non taxpayer with your bank and or building society by completing an R85 form - this allows them to pay interest gross without the standard tax deduction being made.
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Old Jan 25th 2008, 6:38 pm
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Default Re: UK Tax on emigrating

Leaving the United Kingdom

http://www.hmrc.gov.uk/cnr/p85.pdf

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Application for a not ordinarily resident saver to receive interest without tax taken off

http://www.hmrc.gov.uk/forms/r105.pdf

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Getting your interest without tax taken off

http://www.hmrc.gov.uk/forms/r85.pdf

-----------------------------------------------------------------------



Please note that to achieve non-resident (for tax) status you must be outside the UK for a whole tax year (April to April), and you cannot spend more than 90 days in the UK in any one year.

Last edited by Sooty and Sweep; Jan 25th 2008 at 7:24 pm.
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Old Jan 30th 2008, 3:26 pm
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Default Re: UK Tax on emigrating

Thanks
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Old Jan 30th 2008, 3:43 pm
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Default Re: UK Tax on emigrating

whats the difference between the R105 and the R85 arent they both the same thing?
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Old Jan 30th 2008, 6:30 pm
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Default Re: UK Tax on emigrating

Originally Posted by ianhutch1
whats the difference between the R105 and the R85 arent they both the same thing?
The R105 is if you are 'not ordinarily resident' for tax purposes - an example may be someone who lives in Oz but still has deposit accounts in the UK.

The R85 is if you do live here and/or are resident for UK tax purposes but you do not have sufficient income to take you into the taxpaying bracket.

I think thats right!!!!!
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Old Jan 30th 2008, 6:56 pm
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Default Re: UK Tax on emigrating

Originally Posted by TrickyTrev
The R105 is if you are 'not ordinarily resident' for tax purposes - an example may be someone who lives in Oz but still has deposit accounts in the UK.

The R85 is if you do live here and/or are resident for UK tax purposes but you do not have sufficient income to take you into the taxpaying bracket.

I think thats right!!!!!
The R85 form is for tax residents of the UK where you do not need to pay tax on your income, such as savings interest, as you do not have sufficient income such as interest to take you over the taxpaying limits in the UK.

The R105 form is for not ordinarily resident. A person may be regarded as not ordinarily resident in the UK if

• Their home, employment and centre of life has always been abroad, and – they visit, or intend to visit, the UK only for short periods – for example on holiday or irregular business visits which average less than 91 days a tax year, or – they have come to the UK to work or live and intend to stay here for less than 3 years, do not own (or hold on a lease of three years or more), accommodation here for their use, and on leaving the UK intend to visit only for short periods which will average less than 91 days a tax year or – they have come to the UK for a period of study or education and intend to stay here for less than 4 years, do not own (or hold on a lease of three years or more), accommodation here for their use, and on leaving the UK intend to visit only for short periods which will average less than 91 days a tax year.

• They are a former UK resident, and – they have left for permanent residence abroad, and their visits to the UK average less than 91 days a tax year, or – they are currently working full-time abroad under a contract of employment, and both their absence from, and employment outside the UK will last at least a full tax year and their visits to the UK aver age less than 91 days a tax year, or – they accompany or later join their husband or wife, who is working full-time abroad, and meets the conditions for being not ordinarily resident, their absence from the UK will last at least a full tax year, and their visits average less than 91 days a tax year.


Someone living in Australia, but has savings in the UK, and is recieving interest income on these savings in the UK, but is a tax resident of Australia. So you recieve your interest gross in the UK, but pay tax on the gross interest in Australia as you are a tax resident in Austalia.

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Old Jan 30th 2008, 8:05 pm
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Default Re: UK Tax on emigrating

I got £1,300 back from IR because of the PAYE tax I had paid before leaving

I went to my Abbey National branch and got the IR form so that I don't have tax deducted on UK savings. Sent the form off to Abbey HQ and they wrote back to me saying that they they don't offer the scheme. Idiots - the branch says one thing, HQ the other

Not sure what to do now. At least leaving it the Abbey and having them deduct the tax should mean that I don't pay Oz tax on the interest due to the double taxaition rule (I think?)
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Old Jan 30th 2008, 8:15 pm
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Default Re: UK Tax on emigrating

Originally Posted by Red_V_Roger
Not sure what to do now. At least leaving it the Abbey and having them deduct the tax should mean that I don't pay Oz tax on the interest due to the double taxaition rule (I think?)
As I understand it...you pay tax in Australia but can apply for tax credits on the UK tax so that you only effectively pay in one country.

This is a subject for a specialist tax advisor.

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Old Jan 30th 2008, 8:39 pm
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Default Re: UK Tax on emigrating

OMG !!! My head has just shot right up my a**e !!

I am baffled, I knew I had to abviously inform the IR, but it's the tax / savings thing that is confusing me.

When we sell our house, we will have about £20k to take to Oz with us, no savings though as they went on doing the house up, how will the tax thing work ? Will they tax me on this ?

Help for a thickie please!!

Donna.
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Old Jan 30th 2008, 8:41 pm
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Default Re: UK Tax on emigrating

Originally Posted by DEEDEE01
When we sell our house, we will have about £20k to take to Oz with us, no savings though as they went on doing the house up, how will the tax thing work ? Will they tax me on this ?
You won't be taxed on any money you take with you.

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