Tax implications for Expats from todays Budget

[DesertorDessert]

Just seen this "He announced reforms to the "no dom" tax status, saying "anyone resident in the UK for more than 15 of the past 20 years will now pay full British taxes on all worldwide income and gains" from April 2017." on the bbc website from the 2015 budget.

DH has just started a job in the middle east. Will the tax free benifit of this job dissapear in 2 yrs time?

[PosterEh]

Is your DH a UK resident?

[DesertorDessert]

He has a British passport, but currently is living in the middle East. Til last month, he lived, and worked, and paid tax, in the UK for his whole life.

He has just been granted a residents visa in destination country, but will retain his British passport.

[downgraded]

Does it mean resident in the UK for 15 of the last 20 years and still currently resident?

[WixingMords]

Is he domiciled in Britain?

[DesertorDessert]

I don't know!
We have a house here, were born and brought up here.
His new job is permanant, and we (me and kids) are planning on following him when a house and school has been secured. But not sell UK house.
Currently there is no tax to pay on this arrangement.

Or does the non dom tax bit relate to people comming into the UK, not those leaving and earning money elsewhere, but not actually using UK resources, as we are only ever in the country for a few weeks a year?

[PosterEh]

If he's not resident in UK he won't be affected.

[LIZS]

If you rent your house out at the moment you are still liable to UK tax on the income and CGT if you sell further down the line. Non Resident tax used to be handled in Nottingham.

[DesertorDessert]

OK, so if he is (we are) living out of the country, with a permanant address elsewhere, and a rented house in the UK, all tax remains the same, and the sick fealing in the pit of my stomach can go?

This is just for those who live, work and earn in UK, but claime to be based elsewhere to aviod tax on UK income?

[DesertorDessert]

Yep, know about the tax on rental income (don't think it will come to much more than 10K/year, but there will be a small amount of tax on that).

GCT: if we sell without returning to UK, payable. If we return in 5 yrs, live in it for 5 years (more?) it becomes our normal home, and CGT free?

[WixingMords]

He's residing and paying tax there, then you'll be fine!!

[DesertorDessert]

Thank-you.

[RecoveringPerfectionist]

When we returned from overseas ahead of DH we were a bit screwed tax wise because whilst he had been out of the UK for almost a year he had dependants living in the UK for some of that year. And it was made worse because neither our return nor his return coincided with the end of the tax year. We've been back 2 years and our tax still isn't right. And this is with his company paying for one of the big 4 to help with it since being back.

Had we known we'd have stayed put longer, until it made sense to move, but with all the other stresses going on about moving back before we were supposed to we overlooked tax implications. Won't do that again!

You say you are still here but following him out once you've tied up loose ends. If I were you I'd check how long you can be in the UK for anyway, regardless of today's budget.

[justwondering72]

As I understand it the changes are intended to catch up with the increasing numbers of very wealthy individuals who, to all intents and purposes, live / buy property / invest in the UK (especially London) but who claim by various means that they aren't actually resident their for tax purposes. They are bascially trying to benefit financially from the booming property market of London, and to enjoy the benefits of living in the UK, without paying tax in the same way that Joe Bloggs resident has to.

I've been completing online Tax Returns as a non-resident for about 10 years now, and the 'residence and domicile' section has got more complicated every year as HMRC try to pin these people down. I guess the change in legislation is intended to support or clarify this.