So I am non resident this year with no UK income. My main new self build residence (occupied Oct 12 to February 2013) should be sold next month as I don't plan on returning to UK in short term. I assume I will not be required to submit a UK tax return for this tax year notifying this sale, please confirm my understanding is correct?
Replies (7)
Please login or register to join the discussion.
As I understand it
this is a technical forum on accounting tax and allied matters for accountants
A Couple of questions then...
On what basis have you become non-resident (as opposed to temporarily living in a foreign country)?
Have you filled out a P85 form, notifying HMRC of your future non-residence?
http://www.hmrc.gov.uk/cnr/p85.pdf
If HMRC are satisfied that your non-residence is genuine, then they should take the necessary steps (may need prompting), to close down your self assessment returns on the basis that you are no longer subject to them since you have either taken a foreign job based outside of the UK and/or are have moved abroad for a "settled purpose".
You then need to make sure that you limit your visits to the UK, preferably not visiting at all during the first tax year and substantially reduce if not completely curtail contact with family and friends in the UK, such that HMRC cannot argue that the UK remains the centre of your vital interests (to use their particular gross terminology)
You're welcome
Given the above, I don't think you have anything to worry about.
One thing you don't mention though is wife and/or children. Are there any? If there are, will they be expatriating with you?
You might have some trouble with HMRC over the 20 working days in the UK as this is above their de minimis limit of 10 working days, such that they may argue that a return is necessary to ensure that UK income tax due is paid on this.
Any possibility of reducing the 20-days?