UK Income Tax
#31
Re: UK Income Tax
Actually, there is a way, but it's complicated. You have to renounce not only being a British National, but also have to become domiciled elsewhere. Domicile rarely changes and you would have to give up all ties with the UK for it to even be considered.
#32
Joined: Jan 2008
Posts: 88
Re: UK Income Tax
Where can I get more info on this?
Thanks.
LK
#35
Re: UK Income Tax
Tricky for you to get UAE or Saudi nationality, I'd have thought.
Here's some info:
To change domicile a person has to establish clear intention to remain in his chosen country of current residence for life. To do this, serious evidence has to be collated to prove this intention is genuine. Many people have this intention and assume that the very fact they are permanently living abroad with little or no ties to the UK is sufficient evidence. Unfortunately this is not the case and such an assumption without clear action to back up the intention can lead to serious and negative taxation implications particularly when it comes to inheritance tax planning.
Furthermore, if you are residing in another country and you consider yourself to be domiciled there and complete a ‘DOM1’ form from the UK Inland Revenue and always tick the ‘non-domicile’ box of any UK tax return that you fill in, don’t assume that the UK tax man accepts that you are no longer UK domiciled! At best the assumption you can make is that he accepts that your current situation means that you are not liable to any income or capital gains tax and he need not enter into correspondence with you at the time. You need more evidence than this to prove that the UK tax man has you down as non UK domiciled.
If it is your intention to change your domicile to a new domicile of choice, serious action has to be taken on your part to prove to the UK tax man that your intention is fact.
Taking up the nationality of your chosen country and changing your passport is one such significant action. Becoming a member of social organisations in your country of choice and severing links with any social organisations in the UK is another significant action. Consider closing your UK bank accounts, cashing in UK investments and selling UK property. Establish a new life for yourself in your chosen country with a new circle of friends and a property...and exercise your right to vote in the new country. Make a will that is law in the new country and sever UK ties as much as possible. These are all actions that can prove your intention is to remain in the chosen country and to take on the domicile of the chosen country.
A final point - although domicile is a function of physical presence and intent, it is only after death that it falls to be established, so that intent has to be inferred from the actions of the deceased during his lifetime.
(The is much more to say on the subject - such as things like IHT domicile & the complications - but that's enough for now, I think. Honestly, I should charge for this stuff!)
Here's some info:
To change domicile a person has to establish clear intention to remain in his chosen country of current residence for life. To do this, serious evidence has to be collated to prove this intention is genuine. Many people have this intention and assume that the very fact they are permanently living abroad with little or no ties to the UK is sufficient evidence. Unfortunately this is not the case and such an assumption without clear action to back up the intention can lead to serious and negative taxation implications particularly when it comes to inheritance tax planning.
Furthermore, if you are residing in another country and you consider yourself to be domiciled there and complete a ‘DOM1’ form from the UK Inland Revenue and always tick the ‘non-domicile’ box of any UK tax return that you fill in, don’t assume that the UK tax man accepts that you are no longer UK domiciled! At best the assumption you can make is that he accepts that your current situation means that you are not liable to any income or capital gains tax and he need not enter into correspondence with you at the time. You need more evidence than this to prove that the UK tax man has you down as non UK domiciled.
If it is your intention to change your domicile to a new domicile of choice, serious action has to be taken on your part to prove to the UK tax man that your intention is fact.
Taking up the nationality of your chosen country and changing your passport is one such significant action. Becoming a member of social organisations in your country of choice and severing links with any social organisations in the UK is another significant action. Consider closing your UK bank accounts, cashing in UK investments and selling UK property. Establish a new life for yourself in your chosen country with a new circle of friends and a property...and exercise your right to vote in the new country. Make a will that is law in the new country and sever UK ties as much as possible. These are all actions that can prove your intention is to remain in the chosen country and to take on the domicile of the chosen country.
A final point - although domicile is a function of physical presence and intent, it is only after death that it falls to be established, so that intent has to be inferred from the actions of the deceased during his lifetime.
(The is much more to say on the subject - such as things like IHT domicile & the complications - but that's enough for now, I think. Honestly, I should charge for this stuff!)
#36
Joined: Jan 2008
Posts: 88
Re: UK Income Tax
Thanks for the info.
Well it used to be tricky, but now they have introduced a new law allowing such. They also use a points system whereby links though marriage and residing in the country for a number of years make it possible. But the catch I think is that you need to surrender you previous nationality.
Also, who you know helps.
Well it used to be tricky, but now they have introduced a new law allowing such. They also use a points system whereby links though marriage and residing in the country for a number of years make it possible. But the catch I think is that you need to surrender you previous nationality.
Also, who you know helps.
#38
Re: UK Income Tax
N.
#39
Just Joined
Joined: Feb 2008
Posts: 14
Re: UK Income Tax
Meow, you are just the person I need to speak to!
I phoned the tax office before leaving the UK who told me it was ok to send money to my UK bank account to pay my mortgage (my home in unoccupied) etc.
However after reading this I visited their site too and it seems this information is wrong!
Can you tell me more on paying tax on money I send home? I'm VERY worried now.
I phoned the tax office before leaving the UK who told me it was ok to send money to my UK bank account to pay my mortgage (my home in unoccupied) etc.
However after reading this I visited their site too and it seems this information is wrong!
Can you tell me more on paying tax on money I send home? I'm VERY worried now.
#40
Re: UK Income Tax
Meow, you are just the person I need to speak to!
I phoned the tax office before leaving the UK who told me it was ok to send money to my UK bank account to pay my mortgage (my home in unoccupied) etc.
However after reading this I visited their site too and it seems this information is wrong!
Can you tell me more on paying tax on money I send home? I'm VERY worried now.
I phoned the tax office before leaving the UK who told me it was ok to send money to my UK bank account to pay my mortgage (my home in unoccupied) etc.
However after reading this I visited their site too and it seems this information is wrong!
Can you tell me more on paying tax on money I send home? I'm VERY worried now.
Yell if you have any more questions, or PM me.