International Tax Advisor

[ASB]

Thanks for the suggestions meridian..

I have found many accountants to have a local focus and do not necessarily offer the best advice from a holistic / global perspective. I simply need to find a better personal accountant that has some level of speciality with international taxation. The rules are not always simple and I dread trying to corroborate double taxations agreements to sort out my liabilities.

Here is a question I have yet to find an answer to that someone may be able to assist with:

For example let’s say I wanted to emigrate from the UK for a period of time, and during this period I became non domiciled and a non resident. Let’s also say I had a limited company while I was in the UK which had retained profit. If I were to take a dividend from the company while overseas while non domiciled and a non resident would I be liable for UK income tax? I understand I would be liable for tax in the county I was now a resident of but specifically would there be a UK tax liability, would a UK tax return need to be filed?

No UK tax in that situation.

But whether or not that situation could arise is a different matter. HMRC might like to argue that since you are no longer resident (domicile is probably irrelevant here) then the management of the company has moved out of the UK - likely to your new tax residence and the company is no longer UK resident for tax purposes. There is then a little thing called the exit charge. The affect of this is to effectively make you pay further tax on the retained profits.

http://www.hmrc.gov.uk/manuals/cg2manual/CG42440.htm

There may also be personal CGT issues depending on how long you are non resident and whether you happen to sell any of you UK assets (e.g. the shares in your co) whilst non resident.

[backlight]

Thanks for the suggestions meridian..

I have found many accountants to have a local focus and do not necessarily offer the best advice from a holistic / global perspective. I simply need to find a better personal accountant that has some level of speciality with international taxation. The rules are not always simple and I dread trying to corroborate double taxations agreements to sort out my liabilities.

Here is a question I have yet to find an answer to that someone may be able to assist with:

For example let’s say I wanted to emigrate from the UK for a period of time, and during this period I became non domiciled and a non resident. Let’s also say I had a limited company while I was in the UK which had retained profit. If I were to take a dividend from the company while overseas while non domiciled and a non resident would I be liable for UK income tax? I understand I would be liable for tax in the county I was now a resident of but specifically would there be a UK tax liability, would a UK tax return need to be filed?

[meridian]

Absolutely.

legally minimise my overall tax burden.

Tax isn't a burden, it's the price we pay for a civilised society.


Hth

[tim123]

His/her investments may not be easily converted to cash, and nor may he/she want to, e.g property.

This possibility is clear, but if it is the case, there isn't much jiggling he can do to minimise his liability (not the same as minimising his tax due).

He's going to be stuck applying whatever rule is applicable for that investment type in that country.

tim

[meridian]

His/her investments may not be easily converted to cash, and nor may he/she want to, e.g property.

I've found the easiest way is to first of all determine which country/countries you're tax resident in for any particular year, secondly get an accountant in each country to determine your tax liability for that particular country, and finally (assuming you're a UK tax resident) get an accountant here to sort out your international affairs depending on whether you're domiciled or not.

It's not as difficult as it sounds - half the time (depending on the country and investment) as long as you're non-resident there and have paid withholding tax then there's no further tax liability or even a tax return required. If a retun is required, then it'll be easier to get a local to do it on your behalf (e.g France, bloody nightmare with Wealth Tax and all that).

If you really do want it all done by an accountant here, then try somewhere like here http://www.taxationweb.co.uk/forum/ for a more qualified opinion.

[tim123]

I very much doubt that you will find paying for help from an International Tax advisor is cost effective if you only have 'investments', I presume that we aren't talking millions.

You might be best advised to put all the money into one place (country) and then you only have one Tax system to cope with.

tim

[backlight]

Hi all,

Does anyone have a recommendation on an international tax advisor?

I have lived in several counties now, and have investments in each; I need to know what I am legally obliged to do and also the best way to legally minimise my overall tax burden.