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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have been working abroad since August 2012 since I was

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Hello, I have been working abroad since August 2012 since I was made redundant from my job in the UK. I've now been made redundant from my job abroad and have returned to the UK to find another job, either here or abroad. Will I be liable to any income tax on my overseas earnings bearing in mind that I am now redundant?

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Assuming you have been non-UK resident for tax purposes from August 2012 until 5 April 2016, thr earnings for those years won't be taxable in the UK. You should get split year treatment for 2016/17 but only if you are UK tax resident in 2016/17 and 2017/18. Take a look at the notes in section 5 here and at the flowcharts here and here. Split year treatment means that your overseas earning from 6 April 2016 to the date of your return to the UK won't be taxed in the UK. Assuming you stay in the UK, you will need to meet the criteria under one or more of Cases 4 to 8 in section 5 of RDR3.

If you go abroad again, it complicates matters and you would need to ensure that you don't breach the limit to the number of days you spend in the UK in 2016/17.

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


I'm just following up to find out if my answer helped or if you have any further questions.

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Customer: replied 1 year ago.
Hi,Apologies for the delay in acknowledging your response. I'm still trying to understand RDR3....!From what I can make out, I think that case number ***** applies? ....however, as I am still unemployed and unsure whether I will get a job in the UK or abroad in whats left of this tax year, its still not clear whether split year treatment will apply to me as per the SRT flowchart for arrivers. Am I right in assuming that until I get a job its difficult to confirm whether split year treatment applies to me or not?Since my initial email I've worked my way through a Statutory Residence Flowchart I found (KPMG) and according to this I would be classed as non resident, as I am deemed as having no ties in the UK, i.e. no husband/partner/children; no accommodation/home; no UK employment; in the UK for less than 91 days in either of the previous two tax years. Have I read this correctly?Will this affect the number of days that I spend in the UK in a tax year? According to the chart, I can spend up to 182 days in the UK as a non resident, after which I would be deemed resident. Would the split year treatment take precedence over this?Please can you throw any light on the above?Many thanks

Until you have sorted out your job situation, you won't be able to determine whether you qualify for split year treatment for 2016/17 or not as it is dependent on you being a UK tax resident in the 2017/18 tax year as well as 2016/17.

Case 6 could apply as that is based on you simply returning to the UK to live. Again, you would need to be UK tax resident in 2017/18 for spliy year treatment.

If you spend over 183 days in the UK in the current tax year, 2016/17, you will be a UK tax resident and can qualify for split year treatment if you are also UK tax resident for 2017/18. Refer to Table G on page 66 of RDR3 to see hw many days you were able to spend in the UK from 6 April 2016 to the end of the month in which you returned to the UK in order to maintain your UK tax free status for foreign earnings for that period.

The flowchart here may give you a better idea of where you stand under different scenarios.