ProACT Sam clarifies how your status can evolve for long term expats living and working abroad.

When you have been out of the UK for more than 7 Years the tax man can lose interest in you. Assuming you have completed all your returns, don’t have a presence in or links to the UK, and haven’t broken any rules, the expat has great tax planning freedoms returning to the UK.

Even during a tax year a returning UK Expat can protect foreign earnings using split year treatment to ring fence those years right up to the day of return to the UK. If your timing is right you can go into the UK late in the year and still have a full year of allowances against income from that date.

There are, however, issues to consider.  

Capital gains or income arising in the UK will always be taxed there, while a UK expat returning brings back a UK Inheritance tax spotlight on worldwide earnings, that are potentially subject to inheritance tax at 40%.

Join the retainer service to access our expat services and receive exclusive benefits including a review of your non-resident status and potential tax savings & liabilities.

Join the Retainer Service

ProACT’s Retained Client Service offers an online free review for expats living and working abroad where we can check your non-resident status and any liability that may arise.

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