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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15933
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have a client who was born in the u.k. is british for all

Customer Question

I have a client who was born in the u.k. is british for all tests

She has been working in Australia Namibia & New Zealand for at least the last 2 years and will continue to do so for at least a year or 2 more.

She has surplus funds held abroad but wishes to invest them in the u.k.

Are there any tax implications/tax charge on any funds she invests in the u.k.

I understand that any u.k. income from these will be taxed.
Submitted: 4 years ago.
Category: Tax
Expert:  TonyTax replied 4 years ago.
Hi.

So long as your client has non-UK resident status for tax purposes, she can invest money in the UK and not pay tax on the capital invested. She will pay tax on income generated in the UK but as she is British she will be entitled to a personal allowance to mitigate any tax charge.

Take a look at the guidance note here which explains the new UK tax residency rules which have taken effect from 6 April 2013. The automatic overseas tests should be considered first. If none of those definitively class your client as non-UK resident then you need to consider the automatic UK tests. If none of those definitively class your client as UK resident, then you need to move on to the sufficient ties tests.

I hope this helps but let me know if you have any further questions.

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