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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15308
Experience:  International tax
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I am considering going to a tax haven next year,

Resolved Question:

Hi,
I am considering going to a tax haven next year, for 5 yrs to avoid CGT mainly.
I think I understand most of the rules, BUT the one I am not sure about is:
If I were wanting to be considered non resident from say April 6th 2016, then do I have to actually start out by going overseas on that date for a minimum period (90days?) or can I delay departure for up to 180 days and then spend the rest overseas and still qualify? I have no UK ties as such, no home (now sold), rental or otherwise only rental properties (rented out, which I want to sell when overseas), I currently live with a friend. Once overseas I understand the rules, it is just the first year?
Regards,
Mike Bayram ***********
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloYou may be non-resident the day after you leave the UK. Delaying your date of departure moves your date for the 5 years you wish to be gone.You may need to pay UK tax even if you are overseas, eg if you have income from renting a property in the UK. You would be a nonresident landlord.You don’t normally pay tax when you sell an asset, apart from on UK residential property.
Customer: replied 1 year ago.
The question is as the 5 yrs away are full tax years (?) then if I went on or about 6th April and only returned for less than 183 discontinuous days (less the days after 6th April) I assume that would qualify me as non resident. Is there an initial period of being away before you can return even for a few days?
Customer: replied 1 year ago.
I am only interested in CGT avoidance not income tax, as I have a private pension plus rental properties, both of which remain uk taxable?
Expert:  TaxRobin replied 1 year ago.
They are full years (from date of leaving to date of return to stay).You can visit the UK without becoming resident again - depending on why you visit and how long you visit for.You would not want to be in the UK for 183 or more after your first date you left.There is no set number of days after you initially leave before you can return.
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15308
Experience: International tax
TaxRobin and other Tax Specialists are ready to help you
Expert:  Sam replied 1 year ago.
Hi I am afraid that the 5 year rule no longer exists as the new legislation states that even non UK residents will now incur a capital gain liability where the property is situated in the UK.This new legislation is effective from 06/04/2015 - see link here https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-propertySo I am afraid whether you remin 5 or 10 years your profits (gains) on the sale of any proeprty will remin as liable in the UK Let me know if I can assist further Thanks Sam
Customer: replied 1 year ago.
The question is still that first year, If say my departure was say 10-30 days delayed after April 6th 2016, and I didn't return for more than 180 -30=150 days, would the 2016 year still be considered a full year out, as the Total time in the UK is less than 180?
Yes I understand that any gain post April 2015 is now taxable, BUT most of my gain is prior to that, the previous 12+ yrs!
Expert:  Sam replied 1 year ago.
Hi I hope you had everything you needed from our telephone conversation Thanks Sam

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