Let’s assume you’ve already talked to an immigration advisor and chosen a type of visa you require. Now it’s time to think about finances and how to be prepared for the move. First you need to identify a date when you’ll become a UK tax resident and have to declare income as required by the UK tax authorities.
We often hear people say that to be classed tax resident one has to be a UK citizen, or spend in the country at least 183 days a year. This is not right.
Your immigration and tax statuses in the UK are not directly interconnected. While the former one is based on the type of visa you have, the latter one can only be established with the Statutory Residence Test (SRT) introduced by the HMRC in 2013. It has several parts and helps identify the applicant’s tax status even if they have spent in the UK only a few days.
The tax year in the UK starts on April 6 and ends on April 5 the following year. To calculate how many days you spent in the UK for tax purposes, you need to consider days when you are in the country at the end of the day (midnight).
In this case even those that spent in the UK only 46 days can be classed as tax residents, or even 16 days if they had already been in the UK before.
If based on the test results you are classed as tax resident, two main rules apply to you like to any other UK resident:
However, there might be exceptions to these two rules based on personal circumstances. For example, when moving to the UK to settle you will most probably become its tax resident from the arrival date instead of the tax year start date. Besides, all non-domiciles, i.e. those who were not born in the UK, can choose to be taxed on the remittance basis. They will only be taxed on income earned in or brought to the UK.
You also need to be aware of double taxation when you have to pay taxes in two countries. It can be avoided if the UK has a double taxation treaty with the country where you are tax resident.
All aspects must be considered when moving to the UK to avoid surprises and difficulties. Experts at Imperial & Legal use a comprehensive approach to customise solutions for every client taking into consideration all the nuances of their situations. Qualified lawyers will support you during your stay in the UK in immigration and tax issues, real estate and other potential issues you might have.
We will work with you to find a customised solution for your immigration, second citizenship, business, tax and other needs.
Determine your tax status
UK Tax Residence Test
Self-Assessment Tax Return
Tax planning for wealthy families
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