I am going to be out for the next 3-4 hours and will respond to your posting on my return.Thanking you in anticipation.
Hello, in preparation to responding to my tax question you inquired if I'm likely to continue my stay in the U.K. in coming year. I replied to your question, and received yours to the effect you would be out for the next three or four hours, and would then reply. I've not yet received your reply. ???
Thank you for your reply.
You'll need to fill in a tax return if:
- You're self-employed, a business partner, or director of a limited company;
- You're an employee or pensioner with an annual income of £100,000 or more;
- You have a pre-tax investment income of £10,000 or more;
- You're a 'name' at the Lloyd's of London insurance market;
- You're a minister of religion;
- You're a trustee or representative of someone who has died.
Although you are in receipt of rental income and annuity paid by Federal Government in USA and both are taxed in the USA, as a UK resident you would have to declare the dividends received and rental income on your UK tax return by completing supplementary pages SA106 – Foreign.
More information on this can be found on pages FN6 (dividends from foreign companies), FN7 (overseas pensions, social security benefits and royalties, etc) and FN8 (income from land and property abroad) here
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Sorry for the confusion. Apparently my initial reply went awry. Re the question, am I likely to remain in the UK, the situation is flexible. My wife and I are retired, owning and maintaining homes in the UK and the US The EEA Treaty permits my wife (a German citizen) to reside in the UK in retirement, and also allows her to be accompanied by her non-EEA spouse. The Home Office acknowledges my status, but notes it's dependent upon my wife maintaining treaty status. In the meantime I spend about 2500 pounds a month while in the UK, to cover expenses.
The funds come from the annuity and rental income described in the initial question as falling under the US/UK Tax Treaty, with the exception that some of my equities pay dividends, which I do not receive, but are reinvested in additional shares. Its the latter, which presumably would be characterized as income, which lead to my question concerning whether or not I'm required to file a tax return.
I do not fall within the categories listed in your earlier reply, as automatically required to file a return.
Appreciate any incites/guidance you can offer.
Thank you. At tax time in the U.S. I use a Turbotax program, which guides me through the related tax forms and files the result on my behalf, is there a similar program in the U.K. which I can buy/use?
Your advise certainly is worth the "bonus".
You mentioned that I should "...file a return as you are also remitting funds to the UK to live on." Would you go further into the implications relating to the latter. One would think that bringing money into the UK would be a positive, rather than a tax question.
Also, what is the level of income which requires filing a return, and is the level the same for single or married person.
When I file my US return I indicate married, filing jointly. Is there a similar situation here, wherein I/we can benefit?
So, no marital advantage, no wonder the younger people are just living together. Ha! But, that leads to another question.
My wife has lived in the same house for over forty years. She was a horse woman, and still maintains two mares, with stables, and the five acre paddock. The latter and the house initially were acquirement because of her desire to have horses as pets. The present two are 18 years old and have never been ridden. Now a developer would like to buy the property. We are somewhat interested, but only if net gain would handle taxation, fund a similar place elsewhere in the nearby UK, and leave some money for retirement years. We understand gain on the house and up to a half-hectare would be tax free. with a possibility of including all or part of the acreage as integral to the home. The paddock has always been part of the home, the animals never commercial, but rather for my wife's enjoyment. Any thoughts on the likelihood of the paddock being accepted as part of the home for tax purposes?