Have Tax Questions? Ask a Tax Expert for Answers ASAP
thank you, XXXXX XXXXX the income tax aspect I am concerned with as I have not paid any here since my return as from August 2013 to April 2014 I am under the allowance but wonder if I am liable for the entire year?
OK, thank you
no, did not have any property in uk whilst living in spain.
Hi again.The UK tax residency rules changed with effect from 6 April 2013. You can read them here and here. My answer is based on the assumption that you have not returned to the UK to work or have just ceased full time work in Spain or you are the spouse or partner of someone who has been living and working overseas who has returned to the UK. Since you will be living in the UK for 183 days or more in 2013/14, you will be tax resident in the UK. However, you will be entitled to split the tax year of your return to the UK into UK resident and non-UK resident periods if you meet the following criteria:CASE 4 (PAGE 59 OF RDR3)1 You must be UK resident for the 2013/14 tax year. You will be as you will have spent 183 days or more in the UK by 5 April 2014. 2 You must be non-UK resident for 2012/13. I assume you were.3 You must not meet the only home test at 6 April 2014, ie you had no UK home at 6 April 2014 or if you did you also had a home overseas but at some point in 2013/14, you only have a UK home and continue to do so for the rest of the 2013/14 tax year. You should satisfy this test.4 You must not meet the sufficient ties test for that part of the 2013/14 tax year before the day which you met the only home test (6 April 2013 to the day before your UK home became your only home). The sufficient ties are as follows:a You had a UK resident spouse or civil partner, unless you were separated. b You had a place to live in the UK. c You worked more than 3 hours a day in the UK. d You spent more than 90 days in the UK in one or both of the 2011/12 and 2012/13 tax years and e the UK is the country in which you spent the most number of days during the 2013/14 tax year unless you were not resident for all of the 2010/11, 2011/12 and 2012/13 tax years in which case you can discount this tie.As you arrived in the UK between 1 August and 31 August 2013, you will fail the ties test and not be eligible for the split year treatment under Case 4 if, between 6 April 2013 and the day before your UK home became your only home if you were in the UK for:a between 19 and 37 days and had 4 UK ties in the period or b between 38 and 50 days and had 3 or more UK ties in the period orc over 50 days and had 2 or more UK ties.
If your UK home became your only home or it was acquired in July 2013, then the number of days can be changed to 15 to 30 for a, 31 to 40 for b and over 40 for c. See Table F on page 60 of RDR3 here.If you don't fall foul of the UK ties test, then you will qualify for split year treatment for the tax year of your return to the UK and will not have to pay UK tax on your income for the period 6 April 2013 to the day before your UK home became your only home. If you pay Spanish tax on any of your income received after your UK home became your only home then you will get credit for the Spanish tax paid against your UK liability on the same income. However, if your income from the day you returned to the UK is less than the UK personal allowance you won;t have any UK tax to pay for 2013/14. You will be entitled to the full UK personal allowance for 2013/14.I hope this helps but let me know if you have any further questions.