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bigduckontax
bigduckontax, Accountant
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I am a Dutch citizen, and I started working for a UK

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Hi there, I am a Dutch citizen, and I started working for a UK employer since Sept 2015 and I am getting paid in £ every month. I rent a room in Brighton and have done so since Sept 2015. Now, my situation is changing, since I requested to work remotely in France, since I own a property in France, that I am trying to sell, and my family is still in France. The company is OK with this, but told me that I should work 75% of the time in UK and only 25% in France, due to tax implications/regulations. My questions are as follows. I am trying to sell the house in France and obviously don't want to pay CGT on a possible sale (only property I own, main residence.) I therefore saw that it would be better to be a non-resident in the UK. I would like to still be paid in £ and it should have no impact (extra work or costs) on my employer. What is the best way to set this up and what limitations would there be on resident status (like 183 day rule.) Thanks, ***** ***** answer to this complicated, long question.
Submitted: 10 months ago.
Category: Tax
Expert:  bigduckontax replied 10 months ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

Customer: replied 10 months ago.
Hi Keith, sorry if the question is confusing, but I want to make sure I am informed and know what I am talking about
Expert:  bigduckontax replied 10 months ago.

Sorry, the Just Answer system has lost my entire answer and I will have to write it again.

Customer: replied 10 months ago.
Do you need more information, or is the situation clear to you?
Customer: replied 10 months ago.
Sorry to hear that :-(
Customer: replied 10 months ago.
Hi Keith, I am going into meetings, as we speak, so I would prefer a written response for now, and if I need a live phone call, I will let you know later! Thanks for the offer though!
Expert:  bigduckontax replied 10 months ago.

Yes, it is clear. Your French residence appears to be your sole or main domestic residence so any gain made on its disposal is not subject to UK CGT. French CGT is relatively low, the worst is 6% on any gain over 25 K Euros. I cannot go much further on French taxation as their system is so complex and so constantly changing that the employment of a local professional is essential. HMRC does not like the legislative definition of 'sole OR main domestic residence' and always tries to interpret to 'or' as 'and;' Watch out for this trick!

If your employer is requiring you to perform 75% of your duties in the UK you will almost certainly be spending over 183 days in the country in any one tax year and thus liable to UK taxation on your world wide income.

I would love to be able to talk to you on the phone, but I am answering your question from a time zone 6 hours ahead of the UK which will make that option a tad expensive!

I do hope that you have found my reply of some assistance.

Customer: replied 10 months ago.
Thanks a lot. Few follow up questions. From a CGT perspective to be safe, it would be best to be treated as a Non-Resident in the UK then? If so, would I have to contact HMRC to change my address and resident status etc? Would this involve changes or additional costs/work for my employer if I decide to become a non-resident, by working from France? If becoming a Non-resident, would this then mean that I would have to spend less (not more) then 183 days in the UK, as opposed to 75% of the time (which would automatically make me a resident again, right?) Thanks, AJ
Expert:  bigduckontax replied 10 months ago.

As far as UK taxation is concerned you sole or main domestic residence escapes UK CGT. So there seems little point in tying to become non resident. You could do this through the Form P85 procedure, but once you have done this you can only spend 91 days in the UK in any one tax year to retain that status. Remember that these days the UK is beginning to be considered a tax haven!

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Expert:  bigduckontax replied 10 months ago.

Thank you for your support.

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