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Keeping a car in UK - tax implications ?

Keeping a car in UK - tax implications ?

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Old Feb 27th 2012, 11:37 am
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Default Keeping a car in UK - tax implications ?

I am new here and wondered whether anybody has some experience with the following scenario.
We have been in the Middle East for a few years and have recently bought a house in the UK we intend to use for a few weeks every year while we are there on holiday.
We are now also considering to keep a car there (registered in UK).

Would this make us tax liable in the UK despite spending 20-30 days max in the UK ?

Thanks a lot for your help or for pointing out a good tax advisor. We are based in the UAE/Dubai.
Thanks so much !!!
D5
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Old Feb 27th 2012, 12:03 pm
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Default Re: Keeping a car in UK - tax implications ?

The car is not an issue, but the house may well be after 6th April 2013 when the Statutory Residency Test is due to become law, although you should be okay if you are in the UK for no more than 30 days a year.

Final rules will be published next month and I'll be writing about them in detail at that time.
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Old Feb 27th 2012, 12:19 pm
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by Meow
The car is not an issue, but the house may well be after 6th April 2013 when the Statutory Residency Test is due to become law, although you should be okay if you are in the UK for no more than 30 days a year.

Final rules will be published next month and I'll be writing about them in detail at that time.
I will be looking forward to that. Thank you.
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Old Feb 27th 2012, 2:40 pm
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by mauser1905
I will be looking forward to that. Thank you.
Me too
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Old Feb 27th 2012, 3:13 pm
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by donkey5
We are now also considering to keep a car there (registered in UK).

Would this make us tax liable in the UK despite spending 20-30 days max in the UK ?

D5
Apart from tax issues, have you given a consideration to hiring a car for a month instead of keeping a car idle for whole year -30 days without usage+road tax+insurance. And only if the car starts OK next year, else running after garage to fix it and waste time and ££, both. Personally I would go for a hire car unless it is in use by family members to keep it active.

my 2 pence.
Good luck.
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Old Feb 27th 2012, 3:57 pm
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by Meow
The car is not an issue, but the house may well be after 6th April 2013 .
what about a motor home (I have a secret motorhome fetish - the cool surfy types from my time bumming around cornwall and atlantic coast of france in my late teens early twenties)?
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Old Feb 27th 2012, 7:26 pm
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Default Re: Keeping a car in UK - tax implications ?

You may not be able to get insurance for your car in the UK as you are a non-resident:

http://www.insuranceadviceguide.com/...on-uk-resident
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Old Feb 28th 2012, 1:46 am
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Default Re: Keeping a car in UK - tax implications ?

The car might be an issue:

http://www.telegraph.co.uk/finance/p...s-at-risk.html
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Old Feb 28th 2012, 5:28 am
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by hnd
You may not be able to get insurance for your car in the UK as you are a non-resident:

http://www.insuranceadviceguide.com/...on-uk-resident
You can, but more limited options and have to be honest.
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Old Feb 28th 2012, 5:30 am
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by The Dean
It's partly due to cases like this one that the Statutory Residency Test is being introduced.
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Old Feb 28th 2012, 10:41 am
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by Meow
The car is not an issue, but the house may well be after 6th April 2013 when the Statutory Residency Test is due to become law, although you should be okay if you are in the UK for no more than 30 days a year.

Final rules will be published next month and I'll be writing about them in detail at that time.
Looks like another year before they legislate
http://www.taxation.co.uk/taxation/A...residence-test
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Old Feb 28th 2012, 12:46 pm
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Default Re: Keeping a car in UK - tax implications ?

But having a property/car/asset in UK when you are for tax purposes non-resident is a matter of personal choice. And in my opinion its draconian to make rules as such to force expats cut-off their ties from home. Its obvious that any rental yield is taxed and fair.
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Old Feb 28th 2012, 2:18 pm
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by Meow
It's partly due to cases like this one that the Statutory Residency Test is being introduced.
Yes, but RGC was a complete idiot............ he marries a Seychelles woman but then gets her a UK passport (??), he keeps his shotgun licences, club memberships, vintage car collection insurance and registrations, etc, up-to-date........ the taxman's argument that he never really left the UK at all has some validity. His circumstances would apply to very few other people though.
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Old Feb 28th 2012, 3:00 pm
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by The Dean
Yes, but RGC was a complete idiot............ he marries a Seychelles woman but then gets her a UK passport (??), he keeps his shotgun licences, club memberships, vintage car collection insurance and registrations, etc, up-to-date........ the taxman's argument that he never really left the UK at all has some validity. His circumstances would apply to very few other people though.
So if you have a property back in UK, you wont go for home insurance? Wont pay council tax? (fixed asset)

If you have a existing investment fund in the UK, you wont pay their annual fees?

If someone is a chartered member of any British institution then they wont keep their membership updated? (off course you may then pay country based rate).

Dual citizenship or being expat doesnt have to be UK assestless person, IMHO. Thats like going too far in the greed of taxing!
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Old Feb 28th 2012, 4:23 pm
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Default Re: Keeping a car in UK - tax implications ?

Originally Posted by The Dean
Yes, but RGC was a complete idiot............ he marries a Seychelles woman but then gets her a UK passport (??), he keeps his shotgun licences, club memberships, vintage car collection insurance and registrations, etc, up-to-date........ the taxman's argument that he never really left the UK at all has some validity. His circumstances would apply to very few other people though.
Wasn't he trying to claim that he was no longer UK domiciled as well? You just can't have it both ways; hence new rules...
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