Overseas

Question 1

How would the split year treatment apply if leaving the Uk?

Answer 1

For the split year treatment to apply this person would need to be:

-UK resident in the previous year AND
-the current year AND
-not be a UK resident in the next year.

Reason they are leaving the UK needs to be:
- work abroad
- join partner abroad
- cease to have any home in UK

Question 2

how would the split year treatment apply if entering the UK part way through the year?

Answer 2

• person would need to be non-UK resident in the previous year and be a UK resident in the current year

reason they are coming is:
- acquiring home in UK
- work in UK
- return to UK because they have stopped overseas work
- join partner in UK

Question 3

when is someone deemed domicile for Income tax purposes?

Answer 3

if someone has been a UK resident for 15 of the previous 20 tax years with at least one of those being
in since the 2017/18 tax year. They would then be deemed as domiciled in the tax year of the
transfer. Note that we are allowed to include a tax year that has had the split year basis applied to it as one of the UK resident years.

if someone had been born in the UK, their domicile of origin is the UK, and is a UK resident in the tax
year of the transfer we are looking at then they will be treated as deemed domiciled for the tax year
in question.

Question 4

what is the remittance basis?

Answer 4

For UK resident who is not domiciled.
- remittance basis auto applies if UK resident who is not uk domiciled has less than 2k of overseas income. Will be entitled to PA.

Advantages and Dis of using remittance basis on earning over £2k.
A
- taxed only on overseas income remitted to UK
D
- money remitted to UK will be at NSI rate, and no PA can be claimed, DI and SI nil rate band can’t be used.

• arising basis is all income is taxed as normal.

Remittance basis charge
- UK resident for 7 of last 9 years will be charged £30k to their IT.
- If resident for 12 of last 14 years then 60k added to IT.