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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13917
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Non-resident rule. Based on info provided in tax question

Customer Question

Non-resident rule.
Based on info provided in tax question can you please clarify how do I apply tests to my circumstances and whether I would be regarded as non-resident for tax purposes?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
In addition can you please clarify from when I would be classed as non-resident (considering my self employment dates in UK and abroad), and if I sale property lets say before this April how long do I need to remain abroad to be exempt from CGT?
Expert:  Sam replied 1 year ago.
HI Please can you advise what information? As I Cannot access any of your previous questions Thanks Sam
Expert:  Sam replied 1 year ago.
Hi
I am still waiting for information please - but I note you are yet to rate your previous question - it would be appreciated if you would do this
Thanks
Sam
Customer: replied 1 year ago.
Sam
I would rate all questions regardless missing info, however I can only do this when system gives mi that option (I think I need to finish question after receiving response).
In terms of information I have copied previous question for you:
CGT computation Can you please assist me...
CGT computation Can you please assist me with CGT calculations? Currently I reside since 2012 outside UK, however keep traveling to UK to look after my house. Travel dates are as follow: Dates Days 2012 - left UK around 01/08/2012 to live in other EU country year 2012 04-14 September 11 08-12October 5 04-20 December 16 year:2013 January 5 January - in transit 2 March 7 Aprail - in transit 1,5 May - in transit 1,5 06-14 july 9 August 5 09-18 September 9 09-16 December 8 December 26 - in transit 0,5 year:2014 09-10 January - in transit 1,5 19-23 January 5 26-03 Febuary 6 15.04-18.04 10 21.07-04.08 15 27.10-31.10 5 year: 2015 15.04-24.04 9 26.08-16.09 22 16.10-06.11 22 I lived in this property as resident from 07.01.2007 until 19.01.2007and it was my residence from then, property was left empty for some time and then was rented out. Can you also clarify what is: details of how you have utilised any losses and Annual Exempt.What other details are required?
01/02/2016 05:18
01/02/2016 05:51
Sam
Tax Professional
HiCan you add up the days and put them into tax years please
Also advise what dates it was empty for - and did you use it to stay in when you returned to the UK
What dates it was rented out and confirm all rental income was declared to HMRC
You make reference to losses - what losses?
What was the purchase price and sell price- was this is your sole name
What date was this property sold
Costs to buy and sell please (state agents and legal etc)
Costs of any capital improvements
How long do you plan to remin out of the UKI can the provide a calciultion for youThanksSam02/02/2016 02:54
Property purchased 26.01.2007 lived in the house from purchased date for couple of weeks or longer, but from 20.01.2007 another property of mine was declared in CGT computation as my main residence. Other property was sold on 30.07.2012.
I have written to tax office that I have left UK on 07.08.2012, so from 30.07.2012 until 07.08.2012 house was my main residence.
I have registered as self employed on 11.12.2011 and stop trading on 31.03.2013
Ever since I was coming back to UK I was staying in my house. House was rented but I always had 1 little box-room in the house empty.Can you add up the days and put them into tax years please
05.04.2012-06.04.2013 – 47.5
05.04.2013-06.04.2014- 45,5
05.04.2014-06.04.2015- 30
05.04.2015-06.04.2016 - 63Also advise what dates it was empty for - and did you use it to stay in when you returned to the UK
- property was empty from 26.01.2007 (but in reality few weeks later) until 19.08.2008
Main residence:
What dates it was rented out and confirm all rental income was declared to HMRC
I was than rented from 20.08.2008 and is still rented. All income was declared to HMRC.You make reference to losses - what losses?
This is required by HMRC for computation:
„Your computation should include details of how you have utilised any losses and Annual Exempt Allowance due.”What was the purchase price and sell price- was this is your sole name
Property in my sole name.
Purchased price 340000.00 with 10% deposit
Sale price 790000.00
What date was this property sold: 30.03.2016Costs to buy and sell please (state agents and legal etc)
Legal: 1000GBP plus 2000GBP
Agency 16590.00
Stamp Duty at 2007 rateCosts of any capital improvements
House refurbishment and extensions 100000.00K
Home improvements and maintenance – 15000.00How long do you plan to remain out of the UK
My plans have changed now and I am planning to return to UK most likely in May 2021. What happens if I return before that date?In HM revenue and custom form – UK child benefit enquiry after my wife move ot of UK in 2011 I have stated that I intend to return to UK on 01.01.2017. Also in the box: under which law I was liable to pay NI contributions – I have answered that until 31.03.2013 the UK law (this was due to self employment in UK. I have stopped trading on 31.03.2013. I have become self employed since 05.03.2014 and this still continues. I work at least 50 hours a week.
Tenancy:
8 Bedrooms and 6 always rented out.Regards
02/02/2016 08:12
Sam
Tax Professional
Hi
Thanks for your response
If you only lived in this house for a couple of weeks and had another property that you declared as your main residence, then this property will not be treated as your main residence from the date of purchase as clearly all your personal possessions and all aspects of you life were really at the sold property until 30/07/2012
Then you advise it was your main residence for 8 days until Aug 2012 - which I am not sure HMRC will accept this as you then left the UK to work abroad so had no chance to establish a life there in the fashion HMRC
Expert:  Sam replied 1 year ago.
Hi Thanks for the full post - you need to look at the salutatory tests in RDR3 link here https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt If you need assistance with these then I can offer an additional servicve via a telephone call, but as you are not in the UK- I do not know how possible this will be for you to call me in the UK? Let me know if you wish to proceed and I can send a request (this will involve an additional charge) You will never be exempt from capital gains as already explained - as it used to be if you completed 5 full tax years out of the Uk you would be exempt from UK capital gains, and then just have to declare you gain to your tax system in the country in which you were living.Now, since 05/04/2015 you will have a capital gain arising in the Uk for the period from 05/04/2015 to the date of sale I also need to know when you had visits back to the UK - did you carry out any paid work when you returned Thanks Sam
Customer: replied 1 year ago.
Sam
I have never carried out paid work on my return after 31.03.2013, however I have registered as self employed on 11.12.2011 and stop trading on 31.03.2013 and done very little work within that period.
If you wish I could ask you another question in regards ***** ***** test so we could clarify whether as far as HMRC concern I meet test criteria?
Expert:  Sam replied 1 year ago.
Hi
Thanks for your response
Thats good that you did not carry out any work in the UK - just answer works on the basis that the answers we experts provide need to be accepted and we seem to have three questions on the go with the same topic non of which are being accepted (or rated) and all of them you keep answering when I am trying to streamline this done to one Q & A thread
But if you (as a new topic) wish me to go through the statutory tests for you - then this will need be an additional services request as I feel a phone call would be easier than me having to ask questions to get the full picture. Please let me know if you wish to proceed after rating/accepting this thread
Thanks
Sam
Thanks
Sam
Sam and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
In terms of phone conversation this would be difficult for me. As dyslexic I often forget facts and dates and I also get confused. For example sometimes I think that something happened before some event only to discover that it was opposite. When writing I have a chance to look for information in my folder as well as have a time to understand what you are saying. It probably sounds like made up story but unfortunately this is how it is. For those reason I would prefer to do it by writing. Would you be happy to do it this way please?I will try to be as fair as possible when rating and tipping if this is feasible?Regards
Expert:  Sam replied 1 year ago.
Hi
I shall close down this particular Q and A thread as we have done all we need to here - and you should have a response from another question where I have advised how we should proceed. so this response to you is now just for information purposes and there is NO need to reply to this thread ok
But I will deal with your other questions but keep it all on the first/original post for you so its all together.
Thanks
Sam