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UK Expat Tax Advice Related Concerns

12.02.2022 · Posted in Business News Article, Legal Articles

You might not have to pay as much UK tax if you spend a significant portion of your time living or working abroad. Being an expat can have some tax benefits, but it also requires extra caution to ensure that you continue to pay any neutralization UK you owe.

Your tax burden in the UK will vary depending on various variables. These consist of the following:

  • How long do you intend to stay in the UK?
  • Whether you stay employed in the UK
  • What percentage of your income is earned in the UK?
  • Regardless of whether your new country and the UK have a double taxation arrangement

The amount of capital gains tax you could pay on particular assets can also vary depending on where you live. If you intend to return to the UK at any stage, such as to apply for the State Pension, you might decide to continue making National Insurance (NI) contributions. Here’s how to calculate the UK tax you might owe in various situations.

Working Occasionally Abroad

You will not be subject to most UK taxes if you are a non-resident. You must have worked overseas for at least one full tax year to qualify as a non-resident. Additionally, you may only stay in the UK for up to 91 days annually or 182 days in either year. As a result, you’ll need to monitor how much time you devote in the UK.

Working overseas full-time

If you meet all of the abovementioned requirements, you will be considered a non-resident. However, you can still be subject to UK taxes if you continue to earn money there.

Retiring overseas

You must decide how to withdraw money from UK-based pensions if you are retiring overseas yet still have them. Some people opt to move their pensions into a QROPS to receive them in their home nation.

Can I Pay Taxes Twice On The Same Income?

Pay taxes in your new country of citizenship, and the UK may be necessary. However, if you reside in a nation with which the UK has dual taxation agreements, you can typically claim a portion or full refund of the “additional” tax. You can learn more about this from your financial advisor or accountant.

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