Non resident client -employed in the Cayman Islands

Non resident client -employed in the Cayman...

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I have a client who for just the last tax year was employed in the Cayman Islands but had property income from the UK. She is a resident and lived in the UK up to a year ago. When doing her tax return , do I need to include her overseas income and then deduct it or exclude it completely? She is her 2 nd tax year of being non resident .
Thsnks

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Euan's picture
By Euan MacLennan
23rd Sep 2014 11:15

Oh! Dear!

If she is not resident in the UK, she is not subject to UK income tax on earnings for work done outside the UK, so you would not include it on her UK tax return.  The crucial question is whether she is not resident in the UK for tax purposes.

Even as a non-resident, she does remain subject to UK income tax on income arising in the UK, such as letting income from a property in the UK, and you do need to include that on her UK tax return.

Is she registered as a Non-Resident Landlord with no tax being deducted from her rental income?

She will be entitled to the full UK personal allowance against the net property income if she is a UK citizen (and in various other circumstances), so may well not have to pay any UK tax.  You will also need to complete the Residence Questionnaire as part of her UK tax return.

 

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