Residence
With the introduction of the Statutory Residence Test (“SRT”) in April 2013, it is now more important than ever to understand your residence status for UK taxation purposes and whether any of your actions are impacting the UK tax authority’s view without you even realising it.
As an individual, your tax residence status can affect the level of income tax and capital gains tax you pay and so is definitely worth getting right.
To avoid any unexpected liabilities arising in the future, it is vital that you assess your circumstances in respect of your tax residence status at regular intervals. But particularly in the years of departure and arrival, from and to (respectively) the UK.
At TaxGem™, we can review your circumstances and provide you with advice regarding your tax residence position and what action you can take to strengthen your case.
As part of the review we will prepare a report detailing your position and the evidence that has been obtained to support the conclusion. All evidence will be retained as appendices for ease of reference in the event of HMRC challenge.
The SRT is super complex, but our report contains easy to follow flowcharts for each of the three residence tests so you can see at a glance how each could apply.
We also provide a full run down of how your residency status will affect your tax position, and any potential future pitfalls you need to be aware of….
We got you… even if you are abandoning us for Dubai *eyeroll* !
Domicile
Domicile is a more complex, legal concept and is broadly the country in which you have your permanent home and will reside for the rest of your life.
At birth each individual takes on the domicile of their father and this domicile status changes with that of your father until the age of 16.
After the age of 16 it is possible for an individual to acquire their own domicile of choice outside of the UK if said individual wishes to cut all ties with the UK and set up a new life overseas.
Acquiring a non UK domicile of choice can have benefits from an Income Tax and an Inheritance Tax (“IHT”) perspective.
It is no longer possible to obtain confirmation from HMRC that they agree that a non UK domicile of choice has been obtained. It is therefore more important than ever to gather as much evidence as possible that a non UK domicile of choice has been obtained in order to be fully prepared in the event of HMRC challenge.
At TaxGem™, we offer a full review of your domicile status for UK taxation purposes. As part of the review we will prepare a report detailing your position and the evidence that has been obtained to support the conclusion. All evidence will be retained as appendices for ease of reference in the event of HMRC challenge.
This can save both money and time when in discussions with HMRC.
We've got you!
If you are planning an exit from, or return to the UK or are just unsure of your residency status and what that means for you from a tax perspective, get in touch to start your journey with us.