Five steps to planning a tax-efficient return to the UK
26 Jul 17
International tax and wealth management firm Blevins Franks has identified five key planning issues for UK citizens wanting to avoid punitive tax implications when making their move from Europe back to Britain. Click on the slides below to see them.
Expats planning to move back to the UK should exercise close control over the timing of their return if they want to minimise their tax liabilities in both their current country of residence and the UK.
This is because “as soon as you are seen as a UK resident, HM Revenue and Customs can charge you income and capital gains taxes,” Blevins Franks warned.
In some cases, residency can be triggered before expats even leave Europe, potentially bringing them into the firing line for British taxation sooner than expected.
“This could happen, for example, if you still own a UK property or buy one before moving back. Even if you keep your property in Europe. As soon as you are seen to stop using it as your main home, you are likely to be considered a UK resident,” the company noted.
Check the calendar
Expats planning to spend time in the UK to prepare for a permanent return should take care not to bring forward the date of their UK residence status accidentally.
“It can take as little as 16 days back home to trigger residency if you have been a non-British resident for under three years. If you have been non-resident for longer, you could become resident after 46 days of a tax year, or 30 days if staying in a UK property that is considered your main home.”
Tags: Brexit | Estate Planning | Qrops | Residency
