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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am considering a move overseas. Am I obliged to declare

Resolved Question:

Hello. I am considering a move overseas. Am I obliged to declare myself non resident for tax purposes? If I don't, what could be the consequences and what advantages may I gain? thanks
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

Please advise if you would be taking up employment abroad or you are moving for retirement..

Many thanks
Customer: replied 1 year ago.

for employment

and it would be a non Eu country

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your prompt reply.

You should complete a form P85 when you leave the UK to settle abroad. This would enable the Tax Office to update your tax records and get your tax position right. Once you leave the UK, you would be treated as non-resident in the UK for tax purposes and your income outside the UK will not be subject to UK taxation. The advantage of being non-resident in the UK for tax purposes is the exemption from tax of income/earnings outside the UK.

As UK resident for tax purposes, one is normally taxed on worldwide income and you claim foreign tax credit relief against any tax suffered on that income/gain abroad.

More information on form P85 can be found here

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/PersonalTax_iForms/1.0/P85&template=P85.xdp

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.

Customer: replied 1 year ago.

So if I chose not to become non-resident I would have to declare any income I have overseas on my UK tax form (even if it is already taxed in that country)? So how do reciprocal tax agreements work? I am thinking of Singapore so not sure if they have such an agreement.

thanks

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.

If you remain a UK tax residentfor tax purposes, then you would declare your earnings from abroad under employment section and declare the tax suffered on those earnings in supplementary pages SA106- Foreign.

There is a double taxation agreement between the UK and Singapore and you would be able to claim Foreign tax credit relief on tax suffered in singapore.

More information on taxation of foreign income/gains is covered here

https://www.gov.uk/government/publications/self-assessment-foreign-sa106


I hope this is helpful and answers your question.
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