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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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HelloI have some questions I need help with please.1.

Resolved Question:

Hello I have some questions I need help with please. 1. If I was thinking of moving abroad to live for a few years, how will that affect my income tax? what steps do I need to take? 2. In taking this step, I will need to let my only home here. Will I need to pay Capital Gains?

 

I am thinking of moving to Egypt. Not sure what agreements it holds with the uk.

 

3. If I sell some antiques and coins I have. How am I liable for tax.

 

PLEASE ENSURE I AM ON NO MONTHLY PLAN. THANK YOU.

Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you confirm whether you are a UK national or not please. Have you lived in the UK all your life? How long do you propose to be abroad?
Customer: replied 2 years ago.

I am a uk national and have been working here. I propose to go for 3 to 4 years but am unsure how its going to work out.

Expert:  TonyTax replied 2 years ago.
Thanks.

Is it your intention to work in Egypt?
Customer: replied 2 years ago.

No.

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me whiile I draft my answer. There is a fair amount to get through so please bear with me.
Customer: replied 2 years ago.

OK. Thank you.

Expert:  TonyTax replied 2 years ago.
Hi again.

Regardless of your tax residency status, you will be liable to UK tax on any rental income you receive which exceeds the deductible expenses, such as those listed here. As a UK national, you will be entitled to a personal allowance to use against your UK source income. The personal allowance is currently £10,000. As you will be living outside the UK, you may have to have tax deducted at source from your rental income under the non-resident landlord scheme which you can read about here.

If you don't sell your house in the UK, there can be no CGT to pay. If you sell it whilst being treated as non-UK resident, any gain will be tax free as far as the UK is concerned so long as you stay abroad for at least five years. I'm no expert on the Egypt tax system so you would need to seek separate advice on that as far as tax on your UK rental income and any capital gains is concerned. Credit will be given for tax paid in one country against the tax due on the same income or gain in the other country.

Antiques and coins are treated as chattels. Take a look at HS293 here for information on how gains made the sale of chattels are taxed in the UK. The same tax exemption would apply if you sold them as a non-UK resident so long as you remained non-UK resident for at least five years.

Take a look here, here and here for information on determining tax residency. Based on the fact that you don't intend to work in Egypt, you will probably be tax resident in the UK for 2014/15, assuming you leave the UK in the current tax year, due to your having a home in the UK for at least 91 days, you spend at least 30 days in it and you have no home which you own abroad. You will, however, probably qualify for split-year treatment which means that the tax year will be divided into two periods for tax purposes, one when you are living in the UK and one when you are abroad.

For each subsequent tax year, you need to run through the tax residency tests to determine your UK tax residency status.

There is a tax treaty between the UK and Egypt which you can find here.

I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15840
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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