HMRC imposing new limits on time in UK!
#1
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HMRC imposing new limits on time in UK!
Have you guys seen this article about HM tax bods planning to limit further the number of days that Expats can spend back home without risking being taxed:
http://britishexpats.com/articles/fi...rules-warning/
The current limit, I believe, is 91 days in any tax year. The writer of the article doesn't say what new limits are being considered, or how/where one may direct (the apparently 'invited') comments to HMRC...
Does anyone know whether, if one does end up having to file tax returns with HMRC, they will take into account taxes already paid to the IRS? I know there is a Dual Taxation Agreement between the UK and the US, but is it at all likely that this agreement may fall foul of these new residency restrictions?
I am in the final stages of moving back permanently, and giving up my Green Card. My DH will be staying in the US for a few more years, but was hoping to spend extended periods with me back in London. I am just hoping that these new proposals won't put a spanner in the works...
http://britishexpats.com/articles/fi...rules-warning/
The current limit, I believe, is 91 days in any tax year. The writer of the article doesn't say what new limits are being considered, or how/where one may direct (the apparently 'invited') comments to HMRC...
Does anyone know whether, if one does end up having to file tax returns with HMRC, they will take into account taxes already paid to the IRS? I know there is a Dual Taxation Agreement between the UK and the US, but is it at all likely that this agreement may fall foul of these new residency restrictions?
I am in the final stages of moving back permanently, and giving up my Green Card. My DH will be staying in the US for a few more years, but was hoping to spend extended periods with me back in London. I am just hoping that these new proposals won't put a spanner in the works...
#2
Re: HMRC imposing new limits on time in UK!
When we were looking at the UK tax rules a few years ago...the number of days allowed in the UK were spread over a 4 year period...not 1 year.
#3
Re: HMRC imposing new limits on time in UK!
Anyway, El, not going to get your USC first?
Good luck with your plans to back back
#4
Re: HMRC imposing new limits on time in UK!
If you exceed 183 days in 1 year you are considered resident for tax purposes...or...if over a period of 4 years you average over 91 days...you may also be considered a resident for tax purposes.
Edit: Pssstttt...she'll have you for calling her El.
Last edited by Jerseygirl; Jul 25th 2011 at 7:23 pm.
#5
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Re: HMRC imposing new limits on time in UK!
http://www.hmrc.gov.uk/cnr/faqs_general.htm#13nr
If you exceed 183 days in 1 year you are considered resident for tax purposes...or...if over a period of 4 years you average over 91 days...you may also be considered a resident for tax purposes.
Edit: Pssstttt...she'll have you for calling her El.
If you exceed 183 days in 1 year you are considered resident for tax purposes...or...if over a period of 4 years you average over 91 days...you may also be considered a resident for tax purposes.
Edit: Pssstttt...she'll have you for calling her El.
I find it somewhat frustrating that the article by Rhiannon Davies is very short on details - and no links. I hope she'll check into this thread and enlighten us.
#6
Re: HMRC imposing new limits on time in UK!
If you look at the link...it gives you a link to Helpsheet HS302...which gives you info about UK/US tax treaty.
#9
Re: HMRC imposing new limits on time in UK!
There are several stories in Google News about new proposals that change the math
http://gulfnews.com/business/opinion...hange-1.841626
http://www.expatica.com/nl/finance_b...est_17518.html
The main highlights of the proposals are that:
Residence status will be decided on an annual basis, with each year being viewed in isolation from the previous year.
It will be harder to break residence for UK tax purposes than it will be to become resident.
The 91 day average test will be scrapped, the 183 day rule will remain.
Up to three separate tests will be used to determine whether a person is resident or not, and the maximum number of days a person may spend in the UK each year. Each test has separate conditions.
The people affected the most are the Monday-Wednesday UK workers who spend the rest of the week somewhere else in Europe (M&W were travel days and didn't count toward the limit).
http://gulfnews.com/business/opinion...hange-1.841626
http://www.expatica.com/nl/finance_b...est_17518.html
The main highlights of the proposals are that:
Residence status will be decided on an annual basis, with each year being viewed in isolation from the previous year.
It will be harder to break residence for UK tax purposes than it will be to become resident.
The 91 day average test will be scrapped, the 183 day rule will remain.
Up to three separate tests will be used to determine whether a person is resident or not, and the maximum number of days a person may spend in the UK each year. Each test has separate conditions.
The people affected the most are the Monday-Wednesday UK workers who spend the rest of the week somewhere else in Europe (M&W were travel days and didn't count toward the limit).
#11
Re: HMRC imposing new limits on time in UK!
There is more on the proposed changes here:
http://www.mondaq.com/x/137058/IRS+H...Fools+Advisors
Here is the official consultation document (warning: legalese)
http://www.hm-treasury.gov.uk/consul...dence_test.htm
http://www.hm-treasury.gov.uk/d/cons..._residence.pdf
Interested parties have until 9 September 2011 to email their concerns / questions.
http://www.mondaq.com/x/137058/IRS+H...Fools+Advisors
Here is the official consultation document (warning: legalese)
http://www.hm-treasury.gov.uk/consul...dence_test.htm
http://www.hm-treasury.gov.uk/d/cons..._residence.pdf
Interested parties have until 9 September 2011 to email their concerns / questions.
#13
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Re: HMRC imposing new limits on time in UK!
Hi there,
this is the first time I have guest posted to this particular publication. Most don't allow you to add any links to the content. Perhaps that's not the case on this website, I'm afraid I just assumed. That's why there were no links to HMRC or back to the article on my site that covers everything you need to know (hopefully)...
See both: http://www.shelteroffshore.com/index...cy-rules-11062
and http://www.hm-treasury.gov.uk/d/cons..._residence.pdf for all the details you need.
I hope you find this useful to you as you research. The 'rules' are far too open for interpretation at the moment, and this has caused problems for a number of people I know. A statutory test is therefore welcome - as long as they don't restrict the number of days we Brits can visit 'home.'
Rhiannon
this is the first time I have guest posted to this particular publication. Most don't allow you to add any links to the content. Perhaps that's not the case on this website, I'm afraid I just assumed. That's why there were no links to HMRC or back to the article on my site that covers everything you need to know (hopefully)...
See both: http://www.shelteroffshore.com/index...cy-rules-11062
and http://www.hm-treasury.gov.uk/d/cons..._residence.pdf for all the details you need.
I hope you find this useful to you as you research. The 'rules' are far too open for interpretation at the moment, and this has caused problems for a number of people I know. A statutory test is therefore welcome - as long as they don't restrict the number of days we Brits can visit 'home.'
Rhiannon
#14
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Re: HMRC imposing new limits on time in UK!
Thanks, y'all - looks like there's plenty for me to read up on!