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bigduckontax
bigduckontax, Accountant
Category: Tax
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I lived in Australia 1999-feb 2012 (resident & citizen), currently

Customer Question

I lived in Australia 1999-feb 2012 (resident & citizen), currently feb 2012 - present UAE (resident). I am married .Weso;d our house in Australia (50/50) bought house UK in oct 2013 & family lives there.
In 2012 i spent less than 40 days in uk. this UK tax year so far 35 days in uk. I submit a tax return to Australia each year.
I intend to return to UK in April 2015.do i have ties to uk to pay tax for any of the years abroad?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.

You appear at the moment to be non resident in the UK thus only UK generated income like rents from property or interest received in the UK would be taxable in your hands. If you ever lived in the UK you should have sent a form P85 to your UK tax office on your departure upon receipt of which HMRC would have made you non resident for the next following tax year and split the year of departure into two parts one resident and one non resident. You can download this form and submit it on line at any time. On your final return to the UK you should advise your UK tax office if you have one of your return. If you do not have an UK tax office you will soon enough if you start work as the P46 procedure from your new UK employer will kick start the process.

I do hope I have thrown some light on your tax position, please don't hesitate to follow up if there is something you don't understand.
Customer: replied 2 years ago.

 


I was born & lived in UK for 30 years. I did not complete any P85 ( that i recall), for this uk tax year, since i now own a home in uk ( although i dont live there yet, iam not on the electoral role, but do have a car in my name. do i still have 90 days to return to uk for family visits without breaking any HMRC resident thresholds.

Expert:  bigduckontax replied 2 years ago.
Correct, 91 actually and can be averaged over 4 years, but most experts agree that it is best to keep below the 91 day limit in each tax year. It would do no harm to take P85 action now; it will back date to your original departure date and clear your yard arm so to speak.
Customer: replied 2 years ago.

From my circumstances, as much as you are aware, what are the main areas the HMRC consider that would make me a Tax resident of the UK.


As far as I understand I meet the automatic overseas test, from second & third test.


I have read and understood ( does not mean I am correct !!) that the HMRC may still consider people a resident even if they spend less than 91 days in uk.


Example’s I recall are:


Own a house, on the electoral role, return 5-7 days to uk per month.


Can you advise if this is correct and what are the main considerations I should avoid between now and April 2015 to reduce any classification by the HMRC as a resident of the UK.


Many thanks for the advice so far.

Expert:  bigduckontax replied 2 years ago.
As I told you even if you are non resident which you appear to be you are still liable to UK taxation on your UK interests like rent received if you let your house or interest on deposits with banks etc. If you don't have any of these then there is no problem and most deposit takers deduct income tax at the basic rate anyway unless operating under the R85 procedure [notice not to deduct tax if not liable].

Your thinking on this matter is essentially correct. You are almost certainly non resident, but even non residents can still be liable to UK taxation as I explained above and in my earlier responses.

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