OVERSEAS ASPECTS OF PERSONAL TAX

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OVERSEAS ASPECTS OF PERSONAL TAX

• To show how
• The question of residence and/or domicile impacts
  on tax liability
• Income which is taxed in more than one
  jurisdiction is relieved from UK tax
• double taxation relief (DTR)

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RESIDENCY in the UK

• RESIDENCE
• physical presence for 183 days or more, or
• substantial visits habitually made(average of 91
  days over a 4-year period)
• ORDINARY RESIDENCE
• infers that residence is not casual or uncertain
• it has to do with lifestyle or refers to being
  resident year after year

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DOMICILE

• The country which a person regards as being
• their permanent home
• It is determined independently of residence or
  nationality
• In order for a person to change their country of
  domicile it is necessary for them to
• relinquish ties with their original country
• assume customs of their adopted country, e.g.
  make a will in accordance with new countrys law

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SCHEDULE D CASES IV/V
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EMPLOYMENT INCOME
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OVERSEAS EARNINGSOverseas earnings are those
of a non-domiciled person working for a
non-resident employer

• Tax planning advice
• Separate contracts of employment for
  non-domiciled persons

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RESIDENCY FOR PART ONLY OF A TAX YEAR

• Strictly speaking, an individual is either
  resident or not resident for the entire tax year,
  but
• By concession, where somebody comes to, or
  departs from, the UK for job reasons, his
  residency status for different parts of the tax
  year may be determined independently

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An employed person may be regarded as being
resident or not resident for different parts of
the same tax year in the following circumstances-

• A visitor coming to the UK for a period which
  will last for at least two years
• A UK individual departing from the UK for a
  period which straddles a complete tax year
• The concession should not be relied upon for
• CGT purposes
• CGT disposals should not be made until after 5
  April following the date of departure

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