Tax query

Old Nov 21st 2019, 8:30 am
  #1  
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Default Tax query

Hi guys

I've got a tax query that I'm hoping someone on here can help with. I've spoken to my accountant but even she isn't really sure!

My wife and I are moving to the Cayman Islands in January. I will be employed by a company in the Cayman and my wife will keep her current job but on a reduced salary on work remotely. We will need to fill out self assessments for tax every year due to renting our current house out. We will register as non-residents with HMRC and plan on living abroad for at least 1 whole tax year.

The question I have is will my wife have to pay tax on her earnings in the UK or would this be covered by the double taxation relief?

Thanks a lot in advance for any help
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Old Nov 21st 2019, 10:28 pm
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Default Re: Tax query

Originally Posted by mt79 View Post
I've got a tax query that I'm hoping someone on here can help with. I've spoken to my accountant but even she isn't really sure!
My wife and I are moving to the Cayman Islands in January. I will be employed by a company in the Cayman and my wife will keep her current job but on a reduced salary on work remotely. We will need to fill out self assessments for tax every year due to renting our current house out. We will register as non-residents with HMRC and plan on living abroad for at least 1 whole tax year.
The question I have is will my wife have to pay tax on her earnings in the UK or would this be covered by the double taxation relief?
Thanks a lot in advance for any help
Excuse my ignorance, but what is "the double taxation relief"? What "double taxation"?
Also, let me suggest that your post might have been more appropriately published in The Lounge section of BE, since it applies to UK income-tax. Most visitors to that section would probably have an answer for you.
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Old Nov 22nd 2019, 9:28 am
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Default Re: Tax query

The uk have treaties with lots of countries to prevent double taxation, so you only pay tax on the incime once. There is no relief - just an acceptance of what gets taxed where, so your uk income from investments is taxed in the country abroad and from your abroad salary abroad. Of course the good bit is the country abroad may not tax you as much, or might tax you even more, eg ISA wrappers are irrelevant if taxed abroad.

If theres no agreement you may legitimately be taxed by both countries........
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Old Nov 22nd 2019, 9:33 am
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Default Re: Tax query

While living abroad and its tax consequences is simply a fact, in truth you decide whether to register or not or how to obtain the outcome desired and take into account the + and - of that decision with regards to your life.

NB just being abroad for the year doesnt necessarily mean you are domiciled abroad, and yes, this topic needs moving...
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Old Nov 22nd 2019, 1:58 pm
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Default Re: Tax query

Thanks, Grenada, but I actually do know what double taxation relief is in general; but the OP is moving to Cayman where there is no Income Tax, so there can be no double taxation - presuming he is talking about Income Tax. Surely he must know this, since he has negotiated a job here; and I don't know what other tax he has in mind.
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Old Nov 28th 2019, 3:20 pm
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Default Re: Tax query

Hey Gordon. I understand that there's no income tax in the island but HMRC has a limited arrangement in place to ensure that I won't be taxed in the UK for work done there. I managed to get an answer to my question but thanks for your help
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