INSIGHTS

Tax Planning

• The Common Reporting Standard (CRS) and the Automatic Exchange of Information

  Over the years tax evasion – the practice of actively and purposely escaping paying any tax due – has been closely monitored. Countries and tax authorities have battled to target and catch those who are undertaking any illegal practices, especially in territories which have become notorious for tax evasion.

• RDR3 – Remittance, Domicile and Residence

  RDR3 was a Guidance Note drafted by the UK HMRC (HM Revenue and Customs) regarding the Statutory Residence Test (SRT). Prior to its withdrawal from the HMRC website in October 2019, this helped to decide whether a person should be taxed as a UK resident or a non-UK resident by determining a person’s residence status.

• Expert tax advice: how does your residence status impact your tax?

  Did you know that your UK residence and domicile status impacts how much UK tax you are liable to pay? Not only will maintaining a UK non-resident status affect your UK tax exposure, so too does the date you decide to return and become a UK resident again.

• What is the Double Taxation Agreement?

  If you are a UK resident but live, work or generate income in a country other than the UK, you may need to familiarise yourself with the Double Taxation Agreement (DTA).

• Moving Back To The UK Checklist

  Returning to the UK can be an option following changes in your personal life or career. If you are considering a move it’s crucial to plan ahead and understand the key financial considerations which may affect you.

• The Statutory Residence Test Explained

  For British expatriates, or those spending a significant period of time overseas, the issue of residence is an important topic. Simply moving abroad to avoid UK tax is an outdated concept, and recently those wanting to adopt or maintain non-resident status have been scrutinised.

• Your Guide to Inheritance Tax Planning

  Inheritance Tax (IHT) is charged by HMRC on a person’s assets and estate when they pass away. Unfortunately, it is usually too late at that point to make any financial decisions and to mitigate the 40% inheritance tax liability that is due on your assets (with some exceptions).

• What Is Expat Tax?

  Simply moving abroad to avoid UK tax doesn’t always work, and your exposure to tax as an expat will be based on the number of days you spend in the UK, how long you spend overseas, along with any specific ‘ties’ you might retain with the UK.

• Filing an Expat Tax Return

  It can be difficult to understand whether you’re required to complete a Tax Return each year if you’re an expat, so it is usually sensible to speak to a specialist adviser who can look at your individual situation.

• Non-Domicile Tax Rules For Expats

  If you’re a UK tax resident and UK domiciled you are subject to UK Income Tax and Capital Gains Tax on your worldwide income and gains as they arise. However, if you’re UK resident, but don’t have a UK domicile, you can use the remittance basis of taxation.

• Arranging your tax affairs before returning to the UK

  If you’re not tax resident in the UK and as long as you’ve been non-UK tax resident for more than five years, your UK tax exposure is limited. All of your overseas income and gains will be outside of the UK tax net.

• Understanding Annual Tax on Enveloped Dwellings

  For the purposes of ATED a dwelling is a residence (usually a house or flat) and includes any gardens, grounds and buildings within them. Certain properties are excluded from being a dwelling for ATED purposes.

• Do UK Expats Pay Taxes?

  At one stage it was generally considered that moving abroad to become a British expat would allow you to escape UK tax. With UK tax rules now much tighter this is very much an outdated concept. Recently there’s also been increased focus from the tax authorities on those seeking to avoid or evade UK tax.

• What is generational Inheritance Tax?

  Inheritance Tax (IHT) is a familiar part of the UK tax system. It’s generally charged at a hefty flat rate of 40% on any of your worldwide assets if you are domiciled in the UK. But there is an associated catch – generational Inheritance Tax.

• British Expats: When Is It Time To Go Home?

  If you’re a British expat, there’s likely to come a point when it’s time to move home. This could be for a variety of personal and professional reasons, such as a change of role, family circumstances or just a longing for the familiar. Whatever the circumstances, careful planning is the key to a successful move, and allows time to make sure you’re in the best financial position possible.

• Repatriation services explained

  If you’re intending to spend a specific period of time overseas, it’s easier to plan ahead and be ready for your return home. However, you might face an unexpected change in your work or personal life that causes you to return to the UK at short notice, without much time to plan.

• What is ESG integration?

  Today, it’s more widely accepted that companies which operate well do better. In particular, research is showing that business results are directly influenced by the way in which companies tackle environmental, social and governance (ESG) issues.

• Emergency Repatriation: What Can Be Done

  If you’re a British expat, you might face a situation where you need to return to the UK quickly, as a result of an emergency. This can expose you to UK tax, although steps can be taken to help reduce your liability.

• How to Reduce Your Capital Gains Tax Bill

  Capital Gains Tax (CGT) is charged when you sell, gift, dispose of or transfer an asset, such as a property or shares. In recent years the amount of CGT charged in the UK has risen significantly, climbing from £2.5 billion ten years ago to £9.8 billion in 2019/20.

• Can I Get My Tax Back If I’m Leaving The UK?

  If you are leaving the UK to live or work abroad, it’s possible that you may be entitled to a tax refund. As ever, the outcome depends on your personal circumstances and tax status, and it’s important to let HMRC, the UK tax authority, know about exactly when you move overseas so that the right calculations can be made. 

• The relationship between Inheritance Tax planning & trusts

  Trusts can be very useful when estate planning, particularly when it comes to saving tax including Inheritance Tax. Trusts can be put to use in a variety of situations, helping ensure that your assets easily transfer to your chosen beneficiaries in line with your wishes.

• What is tax mitigation?

  Tax mitigation is a way of ensuring that your tax affairs are properly structured so that you don’t pay any more tax than you should. In the UK there are a number of methods which allow you to legitimately do this, and a range of allowances available to help reduce or even eliminate your tax bill.

• What is the Statutory Residence Test?

  The Statutory Residence Test (SRT) was introduced on 6 April 2013 and sets out a series of tests and rules that are used to establish an individual’s UK tax residency status. Understanding your tax residency is extremely important as this will help calculate the income and gains you need to report to HM Revenue and Customs.

• Exploring the BNO passport: everything you need to know

  British National Overseas (BNO) status is a form of Commonwealth nationality created for Hong Kong residents. It enabled those living in Hong Kong to retain a type of British nationality after the territory was handed back to China in 1997.

• What is a British National Overseas (BNO)?

  There are a range of different ways in which British citizenship or nationality can be held. For those with a connection to Hong Kong the British National Overseas (BNO) scheme existed as a route by which a type of British citizenship could be obtained. It’s worth noting that the scheme is no longer available to new applicants.