How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15763
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I am a UK Citizen working in the middle East from dec 2014

Customer Question

I am a UK Citizen working in the middle East from dec 2014 to date, We have a house in the UK (not rented), I am not registered as non resident but do meet the criteria of the Third non residence test, can I transfer money to the UK without being liable to taxation?
Submitted: 5 months ago.
Category: Tax
Expert:  TonyTax replied 5 months ago.

Hi.

You say you don't meet the criteria for the third automatic non-resident test. Do you meet any of the criteria for the automatic UK tax resident tests? If not so you meet any of the non-conclusive tests for non-UK tax residence status or UK tax residence status as shown on the flowchart here?

Customer: replied 5 months ago.
I said I do meet the criteria of the third test, i.e. you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working
Customer: replied 5 months ago.
My wife is with me here in the middle East if that is relevant?
Expert:  TonyTax replied 5 months ago.

Thanks.

Leave this with me while I draft my answer.

Customer: replied 5 months ago.
Can I for instance loan a uk business 7000 uk pounds and they pays it back to me later without taxation?
Expert:  TonyTax replied 5 months ago.

When trying to determine your UK residence status, you need to first consider the automatic non-UK residence tests. If you don't meet any of those, you have to consider the automatic UK tax residence tests. If you don't meet any of those, you have to compare the number of UK ties you have with the number of days you spend in the UK in a tax year. That's why I referred you to the flowchart as you appear to have only looked at the automatic non-residence tests.

Assuming you are not automatically UK tax resident and that you appear to have only one UK tie, you can spend up to 120 days in the UK in a tax year and be non-UK tax resident. If you spent more than 90 days in the UK in each of the previous two tax years to 2016/17, then you have two UK ties and can only spend a maximum of 90 days in the UK in a tax year and be non-UK tax resident.

Whether you send money to the UK or not and for whatever reason is irrelevant to your UK tax residence status. If you charge interest on the loan, that interest will be liable to tax in the UK but you can use your UK personal allowance which is currently £11,000 against it and only pay UK tax on the surplus if there is one. You can have a UK source of income and still be non-UK resident for tax purposes.

I hope this helps but let me know if you have any further questions.

Customer: replied 5 months ago.
Hi there, I do meet the criteria of the third non residence test, i.e. I work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working, does this help the situation?
Expert:  TonyTax replied 5 months ago.

Then you are non-UK tax resident. The text I can see wasn't clear. You can send money to the UK and not jeopardise your tax status.

Customer: replied 5 months ago.
Can my wife and I bring cash into the UK and if so are there limits?
Expert:  TonyTax replied 5 months ago.

There are no limits. Exchange controls were removed in about 1979 or 1980. Many people such as yourself who work abroad leave tbeir families behind but they still have to send money back to the UK to pay the mortgage and other bills. So long as they are non-UK resident they won't pay UK tax on their foreign earnings. If they are UK resident, they will pay UK tax on all their foreign earnings regardless of whether they send money back to the Uk or not.

Customer: replied 5 months ago.
What is the 10000 euro limit on cash all about?, would I have to declare this if we take more into the UK( in UK pounds)
Expert:  TonyTax replied 5 months ago.

I think this is what you are referring to. Those rules apply to money you carry in your pocket. It doesn't apply to transfers of money through the banking system from a non-UK bank to a UK bank.

Customer: replied 5 months ago.
Thank you,To sum up we can transfer to UK bank accounts / isa's as a non - resident in the UK without taxation? and can my wife and I take up to the equivalent of 9999 euro's in cash through UK customs, without taxation, is that correct?
Customer: replied 5 months ago.
or declaration to customs?
Expert:  TonyTax replied 5 months ago.

You can transfer as much as you want electronically but you should warn the recpient bank in advance to avoid triggering their money laundering software. You would not pay tax on your Euros even if you carried more than 10,000. You would just have to disclose the fact that you are carrying more than 10,000 Euros to Customs.

Customer: replied 5 months ago.
Thank you for your advice, all is now a lot clearer.
Expert:  TonyTax replied 5 months ago.

Thanks.

Would you mind rating my answer before you leave the site please.

TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15763
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 5 months ago.
I understand that I can gift my children 3000. Ukp a year, how much can I gift my wife?
Expert:  TonyTax replied 5 months ago.

The list of IHT exempt gifts is here.

You can gift your wife any sum as intra-spouse gifts are exempt from IHT.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions