NT Tax Status

[THEPUMA]

Difficult to do, I know, but can you back that up? Is it just the UK? Certainly, US citizens can't be tax nomads.



Doesn't stop HMRC trying!

As you say it is quite difficult to back up. There is unlikely to be anything on the HMRC website to advise on how to avoid tax. If you google "tax nomad" you will find quite a lot of information but ultimately it is all opinion.

One of our tax principals, Ian Abrey, who used to be head of personal tax at Mazars, has just written an internal memo on it, which is why I was so quick off the mark. If you google his name, you will see that he is quite an eminent lecturer on the subject.

I know the US tax system is quite draconian and that they do require a US return to be prepared for some time after their citizens have left. Ditto Sweden, which I have done some research on recently.

The bottom line is that you have to check the residency and domicile definitions for each country which could have a claim against you and ensure that you do not meet the criteria for each one. If you happen to ever have been US or Swedish resident, then clearly that is going to make it much tougher, if not impossible, to achieve.

[NotAllThere]

I'd get a new international tax adviser. He/she is wrong.

Difficult to do, I know, but can you back that up? Is it just the UK? Certainly, US citizens can't be tax nomads.

They may try and withdraw any possible concessionary treatment but they can't just override legislation or caselaw because it suits them to do so.

Doesn't stop HMRC trying!

[THEPUMA]

My international tax adviser says different...

If you don't satisfy the criteria anywhere, then the tax authorities have the option to tax you anyway. Rather like HMRC redefining the domiclity rules, so that working 3 days a week can be too much.

I'd get a new international tax adviser. He/she is wrong.

They may try and withdraw any possible concessionary treatment but they can't just override legislation or caselaw because it suits them to do so.

[NotAllThere]

My international tax adviser says different...

If you don't satisfy the criteria anywhere, then the tax authorities have the option to tax you anyway. Rather like HMRC redefining the domiclity rules, so that working 3 days a week can be too much.

[THEPUMA]

To be strict "You have to be tax resident somewhere".

If that somewhere has a zero rate of income tax, then you're buying the beers. Only you're not, 'cos your in a Muslim country.

Except that's also not the case. You can be a "tax nomad", not satisfying the criteria for residence anywhere.

[NotAllThere]

I am domiciled and pay tax in Qatar which has an income tax rate of 0% - so my question stands.

The rules about tax residency changed recently, so that people who "really" are resident in the UK, but are using the rules of 90 days etc. to "technically" not be resident, claim they've no tax liability, get caught. If you really really are in Qatar, then I wouldn't worry.

[NotAllThere]

To be strict "You have to be tax resident somewhere".

If that somewhere has a zero rate of income tax, then you're buying the beers. Only you're not, 'cos your in a Muslim country.

[kirk]

Why do you say that you have to pay tax somewhere? That's definately not the case, certain parts of the UAE for example are tax exempt?

[ASB]

I am domiciled and pay tax in Qatar which has an income tax rate of 0% - so my question stands.

THe question is whether the UK-Qatar DTA regards the income taxed in Qatar (albeit at 0%) as satisfying the liability to UK tax. Some do, some don't.

[Smurffy]

I am domiciled and pay tax in Qatar which has an income tax rate of 0% - so my question stands.

[Manic]

You have to pay tax somewhere.

It is possible to be domiciled in a country you spend less than 183 days in.

If you pay tax in the UK, due to international double taxation agreements it is highly unlikely you will pay tax on the same income in another country.

So what's your question?

[Smurffy]

I have an NT tax status, which I intend to keep, by ensuring that I do not visit UK too often. One rule says that if I spend more than 183 days in Uk I will become fully liable for tax - So I wont be doing that!!!

Second rule says that if I spend more than 91 days a year averaged over 4 years then I will become liable. Sound straight forward, and I plan to benefit this year as I have only spent 20-30 days in UK over last few years, so it should not matter if I exceed 90 days this year - but there seems to be some gray areas which are ringing alarm bells - taxman says that he can reconsisder circumstances and can disregard previous years which effectively means that as soon as I hit 90 days I am $crewed!!!

Anyone out there have any experience of this - good or bad??