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No Income Tax if you leave UK

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    No Income Tax if you leave UK

    This is a follow-on to my previous post, thanks expat for clarifing the point. So:

    1. I want to stop paying UK tax.
    2. I am prepared to leave the country in order to do that.
    3. Q: how long do I have to leave for, and when, in order not to be liable for UK tax in 2009/2010?

    Example: MyCo has 60k. CT paid. 60k taken as divis 2009/2010. I may have another 20k income made working abroad 2009/2010, in another EU state. I will probably leave in May 2009.
    Question: For how long I have to stay abroad in order to avoid paying income tax on 60k 2009/2010? When I can "safely" return back? Is it mandatory to leave before 5th April 2009?

    Thanks in advance
    The rest is silence...

    #2
    Originally posted by Viktor View Post
    Question: For how long I have to stay abroad in order to avoid paying income tax on 60k 2009/2010? When I can "safely" return back?
    In reality they are not going to pursue old tax (unless it's a lot) after six years has elapsed.
    Cooking doesn't get tougher than this.

    Comment


      #3
      I always understood that you had to be away for over 5 years, then you're not liable when you come back.
      Hang on - there is actually a place called Cheddar?? - cailin maith

      Any forum is a collection of assorted weirdos, cranks and pervs - Board Game Geek

      That will be a simply fab time to catch up for a beer. - Tay

      Have you ever seen somebody lick the chutney spoon in an Indian Restaurant and put it back ? - Cyberghoul

      Comment


        #4
        Originally posted by snaw View Post
        I always understood that you had to be away for over 5 years, then you're not liable when you come back.
        That sounds like what I heard, but you have to be non-resident UK.

        Comment


          #5
          Originally posted by Viktor View Post
          This is a follow-on to my previous post, thanks expat for clarifing the point. So:

          1. I want to stop paying UK tax.
          2. I am prepared to leave the country in order to do that.
          3. Q: how long do I have to leave for, and when, in order not to be liable for UK tax in 2009/2010?

          Example: MyCo has 60k. CT paid. 60k taken as divis 2009/2010. I may have another 20k income made working abroad 2009/2010, in another EU state. I will probably leave in May 2009.
          Question: For how long I have to stay abroad in order to avoid paying income tax on 60k 2009/2010? When I can "safely" return back? Is it mandatory to leave before 5th April 2009?

          Thanks in advance
          Step 1) Google the word IR20. This will lead you to the relevant doc
          step 2) Read

          HTH

          Comment


            #6
            IR20 continued

            Step 3) Read and understand rules
            Step 4) Google Robert Gaines-Cooper

            Even though he stuck to the defined rules HMRC is trying to remove his not resident status because they feel he has maintained a presence in the UK.

            Bit pointless having a large document with complicated rules which can then effectively be ignored.

            Comment


              #7
              Originally posted by Unicorn View Post
              Step 3) Read and understand rules
              Step 4) Google Robert Gaines-Cooper

              Even though he stuck to the defined rules HMRC is trying to remove his not resident status because they feel he has maintained a presence in the UK.

              Bit pointless having a large document with complicated rules which can then effectively be ignored.

              This is a complete red herring. He wanted to change his domicile, not his residency.

              Changing your domicile requires that you sever your ties with the UK completely and forever.

              If you have done this then you will not need to argue the case about whether you are liable to UK tax because, if you have severed your links with the UK completely, you wouldn't have any UK resident income on which to be taxed, would you?

              He was trying to pull a fast one and (unsurprisingly) failed.

              tim

              Comment


                #8
                Originally posted by Viktor View Post
                This is a follow-on to my previous post, thanks expat for clarifing the point. So:

                1. I want to stop paying UK tax.
                2. I am prepared to leave the country in order to do that.
                3. Q: how long do I have to leave for, and when, in order not to be liable for UK tax in 2009/2010?

                Example: MyCo has 60k. CT paid. 60k taken as divis 2009/2010. I may have another 20k income made working abroad 2009/2010, in another EU state. I will probably leave in May 2009.
                Question: For how long I have to stay abroad in order to avoid paying income tax on 60k 2009/2010? When I can "safely" return back? Is it mandatory to leave before 5th April 2009?

                Thanks in advance
                My guess is:

                "A complete tax year"

                "depends upon when you leave"

                "No"

                HTH

                tim

                Comment


                  #9
                  Originally posted by Viktor View Post
                  This is a follow-on to my previous post, thanks expat for clarifing the point. So:

                  1. I want to stop paying UK tax.
                  2. I am prepared to leave the country in order to do that.
                  3. Q: how long do I have to leave for, and when, in order not to be liable for UK tax in 2009/2010?

                  Example: MyCo has 60k. CT paid. 60k taken as divis 2009/2010. I may have another 20k income made working abroad 2009/2010, in another EU state. I will probably leave in May 2009.
                  Question: For how long I have to stay abroad in order to avoid paying income tax on 60k 2009/2010? When I can "safely" return back? Is it mandatory to leave before 5th April 2009?

                  Thanks in advance
                  AFAIK...you stop been tax resident if you are in the country for less than 183 days, so if you leave start of october 2009, then no tax to pay in the UK. If you are tax resident somewhere else, then you'd have to pay tax there.

                  AFAIK 2...if you take a capital gain, there is no tax to pay unless you return within 5 years.

                  Comment

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