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TonyTax
TonyTax, Tax Consultant
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I am returning to the UK on 16 December 2015 having been working

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I am returning to the UK on 16 December 2015 having been working full time for an overseas employer since 1 November 2012. Holidays in the UK have been 10 days in 2013/14 and 14 days in 2014/15.Will I qualify for a split year basis in 2015/16 and only be taxed on my new UK earning from the date of my return? Although in the UK in 2015/16 for less than 183 days will I also need to be under the 91 day rule. By the time of my return I will have had 40 days in the UK. The balance of days up to 05 April 2016 is 111 days post return adding up to 151 days. Are days pro rata? Jim
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Let me take a look and this and I'll get back to you.
Customer: replied 1 year ago.
Thanks
Expert:  TonyTax replied 1 year ago.
Hi again. You have clearly been non-UK resident since 1 November 2012. Provided that you satisfy one or more of Cases 4 to 8 starting on page 59 here, then you will qualify for split year treatment and your foreign earnings will not be taxable in the tax year of your return to the UK. There is a flowchart here which you may also find useful and a brief summary of the UK Statutory Residence Test which came into effect on 6 April 2013 here. You have to be careful not to breach the reduced number of days that you can spend in the UK between 6 April 2015 and 31 December 2015 assuming you return to the UK in December 2015. See Table F on page 60 here. The number of days that you can spend in the UK in any one full tax year is dictated by the number of ties you have to the UK whist being non-UK resident. Table F serves to show you the reduced number of days you can spend in the UK in the period from 6 April to the end on the month in which you return to the UK. The defined ties are set out from page 30 here. The fewer the UK ties you have before you return to the UK, the better. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
Table F is on page 60 here.
Customer: replied 1 year ago.
Thanks. Case 6 seems to qualify me for split year treatment and total days prior to return fall under the 67 days in table G for period up to 31 December. Previous years covered by third automatic overseas test .Only 1 UK tie prior to returning so assume only period after return will be taxable.
Expert:  TonyTax replied 1 year ago.
It's quite difficult not to qualify for split year treatment if you need to achieve it as the rules are reasonably clear. Even more so, given that you have only one UK tie. Remember that you have to be UK tax resident in the tax year following your return to the UK.
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