Flashcards in Chapter Five - Residence and Domicile Deck (20)
What is the difference on taxation for UK and Non-UK Residents for gains and income?
UK Residents pay tax on income/gains within and outside overseas and Non-UK residence only pays tax on UK income and gains
What are the three tests for residency?
Test 1: Overseas test, resident overseas?
Test 2: Residence test, resident in the UK?
Test 3: Sufficient ties test, how close to the UK?
What are the three areas for automatic overseas test?
UK current tax year = 16 or less days
UK current and non UK previous 3 years = 46 or less days
Overseas employment = 91 or less days with less than 31 days working
What are the three areas for automatic UK test?
UK current tax year = 183 or more days
Home in the UK = Must own it for atleast 91 days and live in it for 30 days
Full time UK employment = Year round
What are the five ties for Sufficient Ties Test?
1. Having a family in the UK
2. Having accomodation in the UK
3. Working in the UK (40 or more days)
4. Time spent in UK previously (90 or more days within last 2 tax years)
5. Time spent in UK compared to any other country
What tax does Domicile link to?
What liability does a UK Domicile have on their assets to IHT compared with a non-UK Domicile?
IHT paid on both UK and Overseas for Domicile and on only UK for Non-UK Domicile ``
What is your origin domicle?
Normally after your father
What is your choice domicle?
Permentantly moving to a new country
What is deemed domicle?
Resident in UK for 15 out of last 20 tax years. If you leave countries, deemed domicile for 6 years for income/gains and 4 years for IHT
What is the income tax position for a UK resident and UK domicile?
All UK tax on UK and overseas property/assets
What is the income tax position for a UK resident Non UK domicile, Non-UK resident and UK Domicile, or non UK resident and domicle?
All UK income from assets/property subject to UK tax
What is Remittance Basis?
This is when you are a non domicile or non uk resident and you can elect for your overseas property to only be subject to income tax if it is remitted to the UK i.e. transferred to a UK bank
Can you use your personal and CGT allowances when using remittance basis?
No, you cannot use personal or CGT allowance
What is the remittance basis?
£30,000 tax charge if UK resident for 7 out of last 9 years
£60,000 tax charge if UK resident for 12 out of last 14 years
Anything over 15 years, become a UK resident so no remittance can be used
What tax is a UK resident and UK domicle subject to for CGT?
They will be CGT on worldwide gains
What tax is a UK resident but non dom for CGT?
UK gains only
What tax is a Non UK resident but UK domcile for CGT?
They have to be a non uk resident for 5 years to escape the CGT
What tax is a non uk and non uk domicile for CGT?
They have to be a non uk resident for 5 years to escape