UK Nationals leaving the UK to work and/or live abroad
Tax if you leave the UK
You have to pay UK tax on your worldwide income and capital gains if you remain tax resident in the UK after you have left. This is regardless of which country your employer is based in and also the country where your income is paid to (i.e. the location of the relevant bank account).
You generally do not have to pay UK tax on income or capital gains (see CGT exceptions below) that you receive from sources outside the UK if you cease to be tax resident in the UK after you have left. If you continue to receive UK sources of income you may need to pay UK tax, for example if you have income from renting a property in the UK.
You may become non-resident the day after you leave the UK – this depends on your situation and how the Statutory Residence Test and ‘split year treatment’ applies to you.
Capital Gains Tax
Generally a non-resident is not subject to capital gains tax on the disposal of either UK or non-UK assets. The main exceptions to this are when:
- You have not been non-resident for five years and as such are considered a ‘temporary non-resident’ of the UK; and/or
- You sell UK residential property
ExpatMatters can provide comprehensive advice, planning and assistance in the following areas:
- Determining your UK tax residence status including ‘split year treatment’ when applicable
- Planning and advice using the Statutory Residence Test
- Advising on income taxable in the UK as a non-resident, e.g. rental income
- Advising on all aspects of capital gains tax for non-residents
- Understanding any double taxation issues and utilising the double-taxation agreements (tax treaties) to minimise taxes and avoid double tax situations
- Preparing UK self assessment tax returns for both UK and non-UK residents and electronic filling with HMRC
- Preparing non-resident capital gains tax returns
- Providing UK departure tax briefings
- Completing all necessary UK departure tax documentation
- Advising on the taxation of termination payments particularly where there has been a period of international employment
- Advising on international Social Security issues
- Handling HMRC notices / audits
The above is not an exhaustive list of services offered, therefore please do contact us for a free initial consultation to discuss your specific requirements. There are no hidden costs in our fee quotes and we can work on a fixed fee basis where appropriate.