Expat Returning to UK Tax Implications

Each year many UK expats  return to the United Kingdom without strong fiscal planning measures. So here is a summary about expat returning to UK tax implications. It’s a good idea to review the tax system as unwanted tax consequences may arise and this may be a shock to expatriates.  Especially if have been working in a country with low or zero taxes for many years.

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Expat Returning to UK Tax Implications 1

Become a resident in the United Kingdom

To avoid ambiguity and confusion, HMRC introduced a Statutory Residential Essay in 2013. An expatriate can determine whether or not they meet the UK resident’s definition by following these tests. Many of the entries still depend on anecdotal information and, as a result, live in the UK much earlier than expected. SRT has three parts; automatic tests abroad, automatic tests in the United Kingdom and the test of appropriate connections. The basic rule is that an individual is resident in the United Kingdom during a fiscal year and always in that fiscal year (although the effect of this rule in the treatment of divided year is resolved).  If it does not meet any of the automatic tests in abroad and they are:

  • Meet one of the tests in the United Kingdom
  • Attend the proper connection test

HMRC recommends that these tests be performed in a particular order.  First observing the first automatic tests in the United Kingdom then each of the automatic tests abroad. And then the automatic tests in the United Kingdom and then.  If the residence is not yet clear considering the appropriate connection tests. It is recommended to consider all categories as this is simpler. If you live in the United Kingdom.  You are subject to income tax on your overall income and capital gains tax on your overall income.


Changes in legislation since leaving the United Kingdom

In the last 10 years there have been a significant number of changes to UK law that cannot be discussed. One of the key areas is Domicile, since a defendant, whether residing in the United Kingdom, resides in the United Kingdom to find out his address in the United Kingdom. If you live in the United Kingdom, your global assets are subject to the inheritance tax of the United Kingdom.


It is designed by the person who is not a resident of the United Kingdom.

However, many of the United Kingdom’s emissions in planning to return to the United Kingdom as non-survival and taking advantage of the tax benefits given by this particular fiscal state may, for the above reasons, not be possible. Make more time accordingly, any planning done during a non-resident period should be reviewed to determine if it is still working.


Assets acquired when not resident in the United Kingdom

You must determine how taxes on these assets would be treated and, in particular, the difference between disposing of them as non-residents or residents of the United Kingdom.


What to do when you return

You may need to register for the self-assessment, for example, if you are self-employed or have other income or earnings from the United Kingdom or abroad. You usually do not need to register if you are an employee and do not have to report any other tax-free income.


What are the tax problems when the return to the United Kingdom expires?

You will usually have your non-resident status, but you are concerned to tell HMRC that you have returned, about possible capital gains tax problems and general concerns that something can be changed and demanded. Tips from you to make sure you come back thinking about the tax options. When you return to the United Kingdom in order to stay in the foreseeable future, HMRC will normally evaluate your entire resident of the United Kingdom from the date of arrival. This means dividing the fiscal year into two parts and taxing each part as non-resident and resident, respectively.

On occasion, you can return to the United Kingdom for a short period and, if this is usually less than 2-3 years, you may be entitled to be a regular resident. This is a special case that you may find useful if you return to the United Kingdom for a period.


Before you go, I hope this article on expat returning to UK tax implications is helpful for you. Speak to a tax exprt to see if the tax rules will  affect your personal circumstances.


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