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Kieran O'Connor
Kieran O'Connor

I am British, but have been living and working in the US for over a decade. I've been here my entire working life, and have never had any UK income. I have had US wages and capital gains, all from US sources and taxed by the US. I understand from HRMCs website that I should not be liable to UK tax on these. However, I just had a heart attack reading that self-assessment might be due for people making over 100K GBP. I was not even aware of the possibility of having to file when I don't owe anything, and this threshold isn't even discussed on many sites. Does this pertain only to residents or to UK sourced income?

I don't know if I have a problem here or how I would go about rectifying it if I do.

by Al M. on 16 May 2018 Read Answer
Kieran O'Connor
Kieran O'Connor

Hi Kieran,

I am a non-domiciled person who with my family moved to the UK in the last number of months. I am currently not employed or paid by any UK entity but will take up employment early in 2018. I still have income abroad and also have tax returns in other countries.

To date, I have funded our stay here based on income which has already been taxed and earned abroad and I remitted after we opened bank accounts here, which in itself was quite a difficult task! No history and no proof of address mean no bank account.

From my reading of the HMRC websites, I may be classified as a non-domiciled tax resident based on the third set of sufficiency tests and given my commitments may most likely file taxes on the remittance basis.
1) If I do file taxes on a remittance basis will Revenue look at my income remitted in this first year as taxable even though it will have already been taxed and earned before I ever moved to the UK? For instance, school fees, vehicle purchase, house rental and deposits, furniture purchases, living expenses etc are all funds which need to be transferred just to get started in a new country.
2) I believe the answer to the above is that they want, and if I'm correct this leads to my next question - will Revenue convert any different currencies which can be proved to have been earned prior to moving to the UK, form part of tax declarations and upon which taxes are paid in a different jurisdiction into sterling and accept that sterling up to that amount is not taxable if remitted to the UK during a certain period of time? Does Revenue accept that income remitted is based on earliest earned income irrelevant to the currency in which it is earned or currency that is transferred which may not be the same?
3) Are taxable remittances basically (in respect of a non-domiciled resident) remittances made from income earned abroad after the point at which the person moves to the UK for the first time and then transfers these funds to the UK?

Thanking you in advance, I look forward to your reply.

J.

by Joseph on 08 Dec 2017 Read Answer
Kieran O'Connor
Kieran O'Connor

Hi Kieran,

I'm worried I may have made a very expensive mistake in regards to paying tax.

I am a UK citizen, but have not been living in the UK for the past 4 years. I have been living and working full time in another country, and earning below the tax threshold in that country (i.e. legally not paying tax).

I am sure that I would not be classified as resident in the UK for tax purposes, as I have only returned to the UK twice in that period of time, and both visits were shorter than 14 days. My only ties with the UK are my parents, who still live there, and a UK bank account.

However, I have only recently become aware that I may have been required to notify the HMRC that I was going to leave the UK... as such, I never did.

Also, I only just became aware that I may have been required to file a self-assessment tax return form each year... and as such, I never did.

I became aware of these issues because I have recently accepted a different job, which will pay me directly into my UK bank account - so I started researching the tax implications of this. I believe that being non-resident in the UK, I am not required to pay income tax on money earned abroad. So, the tax returns I will need to file will simply be showing my tax-exemption... but I'm worried there will be large fines for sending these in so many years late.

My question is, what should I do about the 4 years of non-existent tax returns and notification that I was be living overseas? what repercussions will I face for this mistake, and what can I do to rectify it?

Thanks,

Phil Briggs

by Phil Briggs on 02 Nov 2017 Read Answer
Kieran O'Connor
Kieran O'Connor

Dear Kieran,

I am a Dutch national working and living in the UK since 2000. I have the opportunity to buy a ltd. in NL which consists of a property that is being rented out and that, after some major renovation, will provide a steady rental income.
I could either buy the property privately or buy the ltd.
My questions concerns the tax implications. Am I correct in thinking that if I privately own the property, I will need to pay vermogensbelasting (wealth tax) (box3) in NL and income tax (40%) on the net rental income in the UK. Is there a treaty between NL and UK that compensates for this particular double taxation?
Would it be wiser to buy the ltd. and pay both corporation tax (20%) over the net income and dividend tax (25%) of the money I take out of the company, as there is a tax treaty for these between NL and UK? Would another benefit of a bv. be that I will be able to deduct costs (for renovation, maintenance and management, interest from mortgage) from the rental income before tax?

With kind regards,

Ewald

by Ewald on 03 Oct 2017 Read Answer
Kieran O'Connor
Kieran O'Connor

Hi Kieran. I am a resident in the UK since 01/04/2016. From 01/04/2016 to 30/04/2016 I have received Foreign Income (Netherlands) that was initially taxed in the Netherlands, but I received the already paid Income tax back. The UK government is now asking me to file in my income tax through Self assessment for both tax year 2015/2016 and 2016/2017. How do I split up my earnings as I have an overlap in tax years? And as I have only lived in the UK for 5 days in the Tax year 2015/2016, is this necessary?
Thanks, Anita

by Anita on 20 May 2017 Read Answer
Kieran O'Connor
Kieran O'Connor

Hello Kieran,

I'm a US citizen & resident very likely moving to the UK in the near future. I ran my own business (operations have ceased) here which suffered losses. These Net Operating Losses are being carried forward on my personal returns (I provided the business operating capital) to offset against future taxable income up to the NOL amount. Will I be able to carry this NOL offset forward if I relocate to the UK as an employee of a company? Say I have a 200K NOL. If I remain in the US and generate an income of 250K next year, the NOL would offset against that 250K, leaving a taxable base of 50K.

Is this possible for me to do if I relocate to the UK? Unsure as to whether that's in the tax treaty between the two nations.

Thanks in advance for any help,
James

by James Jones on 08 Feb 2017 Read Answer
Kieran O'Connor
Kieran O'Connor

Hello Kieran

I am a person of Indian origin, currently holding British passport. I am in the UK since 2007. Six months back, I lost my job here. But I am fortunate to get a job offer from India. Intend to start the job in March. But my wife and my daughter shall be leaving in the UK due to my daughter's education. So my questions are

1) If I earn in India and pay tax there, then Do I need to pay tax again in UK?
2) If I send money from my Indian Bank Account to my UK Bank Account towards the House Rent and their Living Expense, whether that remitted amount will be taxable?

Thank you.


Regards

by Prabal Banerjee on 28 Jan 2017 Read Answer
Kieran O'Connor
Kieran O'Connor

Hi Kieran
I am 61years old and have decided to live in Spain due to ill health. I was made redundant and I am renting and living off the proceeds of my redundancy package and a lump sum local government pension withdrawal which is £27k. My local government pension is £5,700 per annum which is obviously insufficient but my redundancy payment allows me to live here until I receive my state pension. Will I liable for tax in Spain? I am also selling a property in the UK which will give me another £50k to cover me for the years before my state pension is paid. Will I be taxed in Spain? The interest rates in the UK are near to nothing and I require all my hard earned money to enable me to enjoy my twilight years. Please advise. Alice

by Alice on 17 Dec 2016 Read Answer
Kieran O'Connor
Kieran O'Connor

Hi Kieran,
I have been a resident of Australia for 12 years and have for that period filed my Australian tax returns. I am a holder of both UK & Australian passports. Due to family reasons I have returned to the UK for the foreseeable future, stopped working in Australia, and so have no income apart from rental income from a property there. I am now a resident in the UK and not working for the reasons indicated above. I am trying to open a UK bank account and have been asked to complete a "Individual Tax Residency Self-Certification Form". Do I move my country of residence for tax purposes to UK or keep it in Australia?
Thanks, Richard

by Richard Wright on 30 Oct 2016 Read Answer
Kieran O'Connor
Kieran O'Connor

Hi Kieran

hope you are well. The Expatica website is excellent.

I have a question and I was hoping you could help. I have moved back to the UK after 4 years in Australia. I have approx 30k stg in savings in Australia (earnings / savings) and I want to move this to UK for a mortgage deposit. my nationality is Irish and I previously was in the UK between 2008 - 2012.

I am trying to find out if I will be charged tax on the savings if I bring them into the UK.

would you be able to shed any light on this?

Best Regards

Ed

by Ed on 18 Oct 2016 Read Answer

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