# Moving back to UK - Tax question...



## Baraka (Jan 24, 2012)

Hi

Here's my situation:


I am a British citizen and have been in the UK for the past 3.5 years

I left the UK in January 2012; filled in form declaring myself to be non-resident

Didn't work out in UAE, so handed notice into work, terminating contract and leaving Dubai in February 2013

Based on above, will I be liable to pay tax on income earnt in the UAE for the tax year 2012 - 2013, and if so, what is the way around this?

Thank you for your advice!


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## clive78 (Nov 23, 2012)

See this download on hmrc website:

http://www.google.co.uk/url?sa=t&so...0QXaSg&usg=AFQjCNGwD0OIaN3qErfc_ItuBs_usjysVw

The important section is 8.5 and I believe that as you will not be returning until February you will be classed as non resident for 2012/13.

This is my interpretation as an accountant but not as a specialist in this field.


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## Elphaba (Jan 24, 2008)

Baraka said:


> Hi
> 
> Here's my situation:
> 
> ...





Your liability in the 2012/13 tax year will depend on the exact number of days you spend in the UK in that tax year (to 05/04/13). Provided you do not exceed a total of 90 days you will not be liable for UK income tax on your overseas income, provided it is paid to you before you become UK resident once again.

Any UK income from your date of return to the end of the tax year is subject to UK tax. 

That refers to income tax only. CGT is a different issue.


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## nikkisizer (Aug 20, 2011)

Hello Baraka,

Based on the information provided you will be liable for UK tax on your UAE employment income if you return to the UK in February 2013 because you will not have satisfied the main conditions to be classed as UK non-resident which are as follows:

- you left the UK to work abroad under a contract of employment for at least a whole tax year

- you will be absent from the UK for at least a whole tax year


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## Baraka (Jan 24, 2012)

Elphaba said:


> Your liability in the 2012/13 tax year will depend on the exact number of days you spend in the UK in that tax year (to 05/04/13). Provided you do not exceed a total of 90 days you will not be liable for UK income tax on your overseas income, provided it is paid to you before you become UK resident once again.
> 
> Any UK income from your date of return to the end of the tax year is subject to UK tax.
> 
> That refers to income tax only. CGT is a different issue.


Thanks for this advice. 

If I send money to the UK in this tax year (transferring money to UK bank account), is that money liable for tax?


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## Baraka (Jan 24, 2012)

nikkisizer said:


> Hello Baraka,
> 
> Based on the information provided you will be liable for UK tax on your UAE employment income if you return to the UK in February 2013 because you will not have satisfied the main conditions to be classed as UK non-resident which are as follows:
> 
> ...


Thank you for the advice.

I've noticed there is some conflicting advice and this has been the issue I've been facing to date. Some people have told me that I'll be liable for paying tax on income earnt in the UAE in 2012-2013, and others tell me that I won't.

I understand that any income brought back to the UK may be taxable, but how can any offshore income be taxed?

I've read section 8.5 of the document posted by clive78, and also section 5.11, which describes periods of being a temporary non-resident (which may be applicable in this case). In these sections, I don't see any evidence of me being taxed on income I've earnt in the UAE. 

Section 5.11 (Temporary non-residents and the remittance basis) reads,



> ‘Relevant foreign income’ (RFI) is any foreign income which arises from a
> source outside the UK and is not from your employment.
> 
> It includes:
> ...


That says quite clearly that income from employment is not taxed.


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## nikkisizer (Aug 20, 2011)

Baraka said:


> If I send money to the UK in this tax year (transferring money to UK bank account), is that money liable for tax?


Only the interest element if any interest is paid into a UK bank account is liable for UK tax


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## nikkisizer (Aug 20, 2011)

Baraka said:


> Thank you for the advice.
> 
> I've noticed there is some conflicting advice and this has been the issue I've been facing to date. Some people have told me that I'll be liable for paying tax on income earnt in the UAE in 2012-2013, and others tell me that I won't.
> 
> ...


Hello Baraka,

Section 8.5 of HMRC6 points out that you will be classed as UK resident due to the facts outlined in my earlier post.

Please also refer to section 8.1.1 (Pg. 44)


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## Baraka (Jan 24, 2012)

nikkisizer said:


> Hello Baraka,
> 
> Section 8.5 of HMRC6 points out that you will be classed as UK resident due to the facts outlined in my earlier post.
> 
> Please also refer to section 8.1.1 (Pg. 44)


Thanks Nikki.

I know what 8.5 says, but please read 8.6 - that applies to me, doesn't it?

I don't really understand 8.1.1 9 (like most tax things, it seems quite complicated!)

If you are correct, is there a way for me to not pay UK tax on income earnt in the UAE in this tax year, on my return in February? 

For example, if I was to not remain in the country for over 183 days in that tax year (and 90 consecutive days), and also not start a job until after 5 April 2013, would that be a good way around getting taxed?


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## nikkisizer (Aug 20, 2011)

Baraka said:


> Thanks Nikki.
> 
> I know what 8.5 says, but please read 8.6 - that applies to me, doesn't it? No because you would not be classed as not UK resident so this would not apply to you
> 
> ...


Please refer to above comments in blue.

Good luck!


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## Karl2803 (Mar 6, 2012)

you need to be out of the UK for a complete tax year April to March otherwise you will get taxed on everything you have earnt here.

Either stay here till 7th April or go somewhere else not part of the UK.


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## clive78 (Nov 23, 2012)

I am inclined to agree with Karl2803. 
If you can stay out of the UK for the extra time it all becomes mute as it is a complete tax year.
Maybe if you have been saving a short stay in Thailand (Supposedly quite inexpensive)


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## celticcavegirl (Oct 18, 2012)

The way I understand it, it depends on how long you have spent in the UK so far this tax year. If you go back back in February, and spend Feb and March (~60 days) in the UK, but have spent <30 days in the UK this tax year before that, you will have therefore spent <90 days total in the UK in the 2012-2013 tax year, and are therefore exempt from income tax

If going back in February will take you over 90 days, then you do not fulfil the criteria for non-residency and are therefore liable to pay tax on your entire 2012-2013 income

So stay out of the UK until going back won't take you over the 90 days before 5th April


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## nikkisizer (Aug 20, 2011)

Please refer to my earlier posts as this does not apply to the OP based on the OP's circumstances.


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