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For your utter confusion here is HMRC's notice on the matter. You will see that the split year is an extra statutory concession.
UK Tax: Individual resident and not
resident in the UK in the same tax year
Strictly, an individual is taxed as a UK resident for the whole of a tax year when they are resident here for any part of it. But, if the individual leaves or comes to the UK part-way through a tax year, the year may, by concession, be split (extra-statutory concession A11).
This means that the UK Income Tax the individual should pay because they are resident here is calculated on the basis of the period they are living here rather than the whole of that tax year. This has the effect of splitting the tax year into resident and not resident periods for the purposes of calculating the tax due.
This split-year treatment will apply to individuals who:
There is a further extra-statutory concession (A78) which also allows split-year treatment if an individual is accompanying their spouse or civil partner when they leave the UK to work full-time abroad, or in the year of return to the UK.
Although the rules for capital gains are significantly different from those for income, there is a split-year concession which relates to the chargeable gains of individuals who come to, or leave, the UK during a tax year (extra-statutory concession D2).
RDRM10135 and RDRM10245 tell you how the liability for the year of departure from, and arrival in, the UK is to be treated.
Yes , all very confusing .
However it does stipulate the tax year " may " by concession be split .
So how do you know if you personally i.e. me returning when the current tax year has started ( my return is June 2014 ) and will remain in the UK and possibly take up employment , how do I know how I will be treated ?
As " may " means they could possibly , I assume , tax me on my last months overseas salary which would be May 2014 and presumably also for practically all of April .
confused.com Thank you .
It is perfectly normal for the departure and arrival years to be split as an extra statutory concession. For the period you are non resident any income accruing will be considered as being in the non resident period. In any event with most countries any tax suffered would be a tax credit against UK tax, but this should not arise. Just tell your tax office of your return.
I cannot see any reason why the concession will not apply. It's bog standard procedure.
Ok , I see , then nothing to worry about .
Thank you .