Expatriates Beware the Tax Man
Following the Court of Appeal ruling on Robert Gaines-Cooper who had been in the Seychelles since 1976, those who retire abroad and still keep interests in the UK may still be taxed on their worldwide income.
The difficulty comes with the rules surrounding residency. HMRC6 is new guidance on residency replacing IR20. IR20 indicated that you could claim to be non resident if you lived abroad for more than three years and did not return for more than 183 days in any one tax and, on average, fewer than 91 days.
HMRC 6 states: “ just because you leave the UK to live or work abroad does not necessarily prove that you are no longer resident here if, for example you keep connections in the UK such as property, economic interests, available accommodation and social activities, or you have children in education here.” Even maintaining membership of a golf club could affect your residency claims.
If you have moved abroad to work, HMRC normally regards you as non-resident for the whole time that you are away, apart from 183 days in any tax year or an average of 91days or more a year over four years. Note though that the 183 days includes the date of arrival and departure.
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