Fredrik
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Would I become non resident if I leave UK in Sept?

I am living in UK on Canadian passport and work visa since 2011. Please see full question below.

I am leaving UK permanently and moving to USA to work. I have choice of either leaving towards end of September (after 29th) or towards end of October. If I leave on 29th of Sept I would have spent 180 days in the UK for this tax year.

So from personal income tax perspective moving out in Sept be a better option or it doesn't matter?

I'm higher rate tax payer but if I leave UK about half way thru tax year then my total annual income in the UK would be below 40% tax rate threshold therefore I believe I should get tax refund because my employer has deducted tax / PAYE - at source like they have been doing for last five years. I want to know best exit strategy to maximise tax refund this year.

Thanks

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17th Jul 2017 14:20

Have you tried this? http://tools.hmrc.gov.uk/rift/screen/SRT+-+Combined/en-GB/summary?user=g...

Looks like you're split year Case 1 non res from the date you leave as going to take up full time employment overseas

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By Fredrik
to Paul D Utherone
17th Jul 2017 14:59

Would it still be split year treatment if I leave towards end of October? i.e. stay of approx 200 days in current tax year. And them move permanently abroad.

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17th Jul 2017 15:21

If you leave before 6 October you probably cannot claim split year. If you leave after then you probably can. In either scenario your UK income is likely to be fully taxable. If you leave before 6 October you may lose entitlement to any Personal Allowance which could mean you will owe more tax instead of getting a refund. If you leave after you may get a refund. As ever, the devil is in the detail and you will need to read the relevant DTAs and crunch the numbers.

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By Fredrik
to Tim Vane
18th Jul 2017 12:21

Thanks for the useful reply. I have decided to leave after 15th Oct to be on safer side.

If I do qualify for split year treatment, then my income would be about half of what I get in full tax year. My full income goes beyond at higher 40% tax rate. But my half doesn't so would they calculate that half income for full year and refund me overpaid tax

OR would they pro-rate half income for of the half year that I am in the UK and refund nothing?

This is mostly a technical question regarding split year treatment rather than question relating to my situation.

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18th Jul 2017 12:28

I was going to provide a response to this question, and then it occurred to me that I could make better use of my time standing in a wind tunnel and having a wazz.

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By Fredrik
to Portia Nina Levin
18th Jul 2017 14:01

You could have done that and saved some time for both of us had you not typed in a response at all.

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to Fredrik
19th Jul 2017 11:23

You could have saved everybody some time by putting your frigging hand in your pocket!

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By Jim100
18th Jul 2017 22:38

Questions on Resident/Non Resident are far too complicated to be answered on a forum and to get a definite answer suggest the OP hires a tax adviser.

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to Jim100
18th Jul 2017 23:14
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19th Aug 2017 09:37

You will also need to consider the effect on your US Federal & State tax position. What kind of visa will you have in the States? Is there US pre-immigration planning you want/should undertake?

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