UK Tax Residence Status - New proposed changes

[Fytiman]

Has anyone noted tha article in the Cyprus Sunday mail regarding the consultation document which has been issued by HM Treasury regarding proposed changes to UK Tax residence status and the number of days that various classes of expats will be allowed to visit the UK post 2012 - 13 before being classed as resident for UK tax purpose?

Good news for some and bad for others e.g. expats whose sole, (owned) home is in the UK, (renting overseas), will be limited to a max of 9 days in the UK in a tax year before being classified as UK tax resident. (Some conditions apply - but that will be the basic rule).

Comments?

[Fytiman]

Mmmmm - doesn't so far seem to have elicited any comments as requested. Perhaps, as this site is mainly for "owners" and "buyers" then that may be because you are all "owners" and 'buyers" and not "renters" or indeed "buyers" who still have a property in the UK - because if it is the latter then this definitely affects you. However under the new proposals many "owners," here, even without property in the UK, could be limited to 45 days per year in the UK before becoming liable to UK tax. (And not just for the current year!) I thought that these new radical proposals by HM Treasury - as highlighted by Blevins Franks in the Cyprus Mail may be worthy of some discussion - then again - perhaps not.

[Nigel Howarth]

Hi Fytiman,

In June, the Inland Revenue has issued two relevant consultation papers:

Reform of the taxation of non-domiciled individuals

Statutory definition of tax residence

I suggest that you read the second of these to assess what your situation could be if the changes are implemented.

Looking at my own situation (I own have property in both countries) I have nothing to worry about.

You should also check out the prototype assessment tool on HM Treasury’s website at http://www.hm-treasury.gov.uk/consult_s ... e_test.htm to see how the potential changes could affect you.

Regards,