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bigduckontax
bigduckontax, Accountant
Category: Tax
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Im emigrating from the USA to uk to marry my partner... What

Customer Question

I'm emigrating from the USA to uk to marry my partner...
What are the tax ramification if:
I keep a job in the US while I'm on the fiancee visa and work remotely (I'll still pay MN state tax & federal taxes in the US) - does any of that income get taxed by the UK? A real scenario is that I work part-time for a US company and get a part-time job in the UK at least in the beginning. Eventually I'll switch to a full-time job in the UK and have no income coming from the US
I have a plush-toy product in the US with US copyright and US registered trademark (R). If I want to bring that along to sell to retail stores and possibly online (and ship out of the house) (www.evilteds.com):
do my expenses that I incurred in the US but have not claimed (expenses that are tax-deductible) still count as a deduction or do I lose that as a tax deduction? (it's a new product that I have $15,000 in expenses and very little income so far to claim against it).
can I legally sell it in the UK? (it's a plush toy, labelled for US and some international retail) - is there an authority that can give me a solid answer if I send them photos of all the tax and packaging?
Submitted: 3 years ago.
Category: Tax
bigduckontax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
Here is the HMRC advice on the matter of UK taxation liability for a person in your position:
'Resident
If you're in the UK for 183 days or more in a tax year, you're resident for that year for tax purposes.
If you come to live in the UK permanently or to remain for three years or more you're resident from the date of arrival.
You're also treated as resident if you're in the UK for an average of 91 days or more in a tax year - worked out over a maximum of four consecutive tax years.
Ordinarily resident
If you're resident in the UK year after year you will normally be treated as ordinarily resident.
You're treated as ordinarily resident in the UK from the date you arrive if it's clear that you intend to stay for at least three years.'
Those are the definitions for Resident and Ordinarily Resident.
It would appear that in addition to the Double Taxation Treaty between the UK and the USA ther is one between the UK and MN also. Thus any tax paid in the States would be allowed as a tax credit against any UK tax liability on the same income thus precluding it being taxed twice.
Your expenditure on your new product might be allowable against UK taxation if you register as self employed. On importation to the UK HMRC may charge both Import Duties and VAT on these. You would, however, have to obtian separate clearance for your imports. You may be aware that th UK has, in the past, been plagued by shoddy and sometimes even dangerous imports of soft toys from overseas!
I do hope I have shed some light on your possible future situation.
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