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I have 7 questions regarding UK tax -residents, which

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I have 7 questions regarding UK tax for non-residents, which are all linked.Question 1. I am using an HMRC document published in December 2013, RDR3, titled “Guidance Note: Statutory Residence Test (SRT)”. Is this document still current and, if so, are there any plans to change it in the near future?
Question 2. Assuming yes to question 1, will I be non-resident in the UK for tax purposes in the 2016-2017 tax year, given the itinerary below:
• Leave UK for holiday in Canada on 16/3/16
• Arrive back in UK on 3/4/16
o 2 days presence in my UK home
• Leave UK on 4/4/16 for work in Finland and Switzerland
• Arrive back in UK on 22/4/16
o 3 days presence in my UK home
• Leave UK on 24/4/16 and retire to Thailand:
• Arrive back in UK for a holiday in Europe on 3/7/16, spending
o No more than 21 days presence in my home
o Around 3 nights in hotels in the UK
o The rest of the time in mainland Europe and The Republic of Ireland
• Leave UK on 27/8/16 for Thailand and rent out my UK home from 1/9/16 for at least 12 months
• In the remainder of the 16-17 tax year, I will be in the UK less than 10 nights and not staying at my UK home since it will be rented out
o Around 10 nights at my brother’s home in the UK
Question 3. When do I need to inform HMRC of my non-residence for tax purposes and how do I notify them i.e. what forms do I need to complete.
Question 4. I will be renting out my UK home, which is a flat, whilst non-resident. Which of my UK-home related expenses will be allowable against the rent for income tax purposes? These expenses will be:
1. Agency letting and management fees
2. £100 monthly paid to the management company for buildings insurance, repairs to the buildings, garden maintenance etc.
3. Maintenance and repairs within the flat as incurred
4. Contents and landlord insurance
Question 5. Whilst non-resident in the UK, which parts of my income will I need to declare to HMRC through self declaration? The income streams I may have are:
a) UK State Pension
b) UK based SIPP
c) Rental income from my UK flat
d) Occasional consultancy work for a UK based company paid through a UK based LLP
e) Occasional consultancy work for a UK based company paid directly to me into my Swiss personal bank account
f) Sales and royalty income from sales of my books sold through Amazon and others around the world paid directly to me into my Swiss personal bank account
g) Interest on UK bank deposits
h) Interest on non-UK bank deposits
Question 6. Whilst non-resident in the UK, which income streams listed above will HMRC require that I pay UK income tax on?
Question 7. At some time in the future, when I am non-UK resident, I will be selling my UK home. Will I be liable to UK Capital Gains Tax? If so:
• How is the gain calculated?
• What allowance will I be eligible for?
• What is the current CGT rate that would be applicable on the gain?
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 10 months ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. 1. The Statutory Residence Test is available here: https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt You can never be sure that these rules might be amended, often with minimal notice, to close loo[holes. When you first leave the UK's shores, you should complete a Form P85 to HMRC. This form is available on the web and can be filed on line and there is no time limit as to its submission. On receipt HMRC will classify you as non resident for the tax year following your date of departure and furthermore split your leaving year into two portions, one resident and one non resident. Once you have been classified as non resident you may spend up to 91 days in the UK without breaching your non resident status. In theory the 91 day rule can be averaged out over four years, but the general consensus of opinion amongst experts on this site is never to exceed the magic 91 days in any one tax year. Despite you non resident status you are still liable for income tax on your rental income from your UK house. Here are the most common deductions allowable [source; Which]: 'The most common types of expenses you can deduct are:water rates, council tax, gas and electricitymaintenance and repairs to the property (but not improvements)contents insuranceinterest on a mortgage to buy the propertycosts of services, including the wages of gardeners and cleaners (as part of the rental agreement)letting agents' feeslegal fees for lets of a year or less, or for renewing a lease of less than 50 yearsaccountant’s feesrents, ground rents and service chargesdirect costs such as phone calls, stationery and advertising for new tenantsThe expense should be incurred wholly and exclusively as a result of renting out your property.' Pensions are normally taxed in the country of origin and often relieved elsewhere through Double taxation Treaties of which there are literally hundreds. So for HMRC purposes you will have to declare a, b, c & g [remember the tax deducted by UK deposit takers will help offset your State Pension which though taxable, but paid gross. That is until next tax year when the first 1K of bank etc interest is paid tax free. Double taxation Treaties may well make it advantageous for you just to leave the UK income taxable and use the tax credits thus available against overseas taxes levied. As an EEA citizen you are entitled to the usual personal allowance, currently 10.6K to offset such income. The sale of your UK home will attract Capital Gains Tax for a time proportional to your residence and non residence therein. For the latter Private Residence Relief (PRR) applies which relieves the tax at 100%. The last 18 months of ownership you are deemed to be in occupation even if this is not the case. Any gain made is taxable at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. You havw an Annual Exempt Amount (AEA), non cumulative, to offset the gain of 11.1K and also Lettings Relief )LR) up to 40K. The gain is the difference between the net selling price ie after deduction selling costs and the acquisition price. The latter is the purchase price plus any buying costs including stamp duty plus any improvements eg installation of double glazing, central heating or extensipns, but not routine maintenance which is chargeable against rentals as i explained earlier. II do hope that my reply has been of assistance.
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Expert:  bigduckontax replied 10 months ago.
Thank you for your excellent support.
Customer: replied 10 months ago.
Hello Keith,
Thank you for your answer. Just one thing: When I move abroad it will be on a retirement visa in Thailand. However, I will be writing occasionally and will have royalty/sales income from my books. I am clear about my Thai tax situation. Concerning my UK residency status for UK tax purposes, I was under the impression that I would not pass the third automatic overseas test (with the 91 days rule) because I would not be working full-time overseas. Hence my question 2 with the itinerary to test against the second UK test. Can you confirm (or otherwise) that, given I will not be working full-time, I will not pass the third overseas test. And then whether my itinerary means I should not become resident due to the second UK test. Thank again. Brian
Expert:  bigduckontax replied 10 months ago.
Once you have left the UK on a retirement visa to Thailand it would be ludicrous of HMRC to suggest that you cannot be classed as non resident. Non residency is not dependent on working overseas, but on location. Thailand swarms with Brit ex pats, most retired and all are non resident in the UK for tax purposes! The UK has a Double Taxation Treaty with Thailand, but you will almost certainly have to employ a local professional there to assist you. Dealing with the Thai bureaucracy can be very difficult. I know my two step sons, I have a Thai wife, could never get the allowance for looking after their grandmother despite an entitlement. When I suggested it should be the subject of an appeal they just shrugged their shoulders, it simply did not happen. I cannot see on the data you gave me how you can breach the 91 day rule which, as I told you, can be averaged out over four years. You may have a ding dong with HMRC, but it should all come out in the wash.
Customer: replied 10 months ago.
Thank you.
Expert:  bigduckontax replied 10 months ago.
Delighted to have been of assistance. Enjoy yourself in Thailand; I have just wintered there and the wife comes back in about three weeks. It is a lovely country for retirement and the older you are the more you are respected.

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