Overseas aspects of IT and CGT

Question 1

A person acquires domicile at

Answer 1

Birth - usually domicile of their father (or mother if father died before born or unmarried at birth)

Question 2

A person retains their acquired domicile. until they acquire

Answer 2

Different domicile of dependency (under 16 and person whom legally dependent on changes domicile)
Different domicile of choice (16+)

Question 3

Person can be deemed domicile if either of the conditions are met:

Answer 3

• Resident in UK for at least 15 of past 20 tax years, but not if not UK resident in that tax year or any tax year from 2017/18 onwards or
• boring in UK, domicile of origin in UK and UK resident in tax year

Question 4

UK resident worldwide income

Answer 4

Liable to UK income tax on worldwide income

Question 5

UK non-res worldwide income

Answer 5

Only liable to UK income tax on income arising in the UK

Question 6

Arising basis definition

Answer 6

income and gains are taxed as they raised regardless of where the income/gains are held

Question 7

UK R&D - overseas income taxable on

Answer 7

arising basis

Question 8

UK R and ND - overseas income taxable on

Answer 8

Remittance basis may apply (charge 30k-60k)

Question 9

UK non res - overseas income taxable on

Answer 9

not taxable

Question 10

If working abroad temporarily for UK employer in EU, UK NIC are

Answer 10

applicable for the first 12 months

Question 11

If employer bears cost of board and lodging abroad this is

Answer 11

a tax free benefit

Question 12

If employed abroad, employee may return home any number of times at the expenses of the employer, these costs

Answer 12

are not taxed s benefits

Question 13

For absences of 60 days +, travelling expenses for spouse and minor child are

Answer 13

tax free if paid/reimbursed by employer - up to 2 return visits

Question 14

When does remittance basis automatically apply

Answer 14

• ND with unremitted income and gains <2k
• ND, no UK income/gain/Uk inv income < £100, no income remitted, UK res not more than 6/9 previous tax years/under 18

Question 15

If claim remittance basis

Answer 15

• lose entitlement to PA and CGT AEA
  may have to pay RBC 30k if resident 7/9 tax years and 60k if 12/14 tax years
  must make claim within 4 years after end of relevant tax year

Question 16

Claiming the remittance basis

Answer 16

• normally made on self assessment form
• < 18years old no RBC
• RBC in addition to tax due on remitted income and gains
• if do not claim remittance, taxed on arising basis with full entitlement to UK PA and AEA
• consider year by year

Question 17

Who can claim PA
Citizens of EEA

Answer 17

Yes

Question 18

Who can claim PA
Resident in Isle of Man/channel islands

Answer 18

Yes

Question 19

Who can claim PA
Current/former crown servants and widow/ers

Answer 19

Yes

Question 20

Who can claim PA
Residence in territories with double tax agreement

Answer 20

Yes

Question 21

Who can claim PA
Former residents who left UK for health reasons

Answer 21

Yes

Question 22

Steps to DTR

Answer 22

1. Calculate UK income tax including all soruces
2. Exclude overseas suffering highest rate of overseas tax, treat this source as top slice
3. Recalc UK income tax
4. exclude net source of overseas
5. repeat three, exclude both sources, difference is UK tax on second sourec

Question 23

DTR is

Answer 23

lower of actual overseas tax and UK tax on overseas income

Question 24

UK gains and losses for UK R&D

Answer 24

Arising basis

Question 25

UK Gains and losses for UK RND

Answer 25

arising basis

Question 26

UK Gains for non UKR

Answer 26

not usually taxable in UK (6/4/19 on disposal land)

Question 27

Overseas gains and losses for UK R&D

Answer 27

Airing basis

Question 28

Overseas gains and losses for UKR, ND

Answer 28

Remittance basis limited relief for losses

Question 29

Overseas gains and losses UK NR

Answer 29

Not taxable in UK

Question 30

From 6/4/19 NR are subject to CG on

Answer 30

disposals of UK property (assets deriving 75% value UK land)