Alan Hall’s Tips: Tax Advice for Expats

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As an Expat himself, PFM’s Managing Director, Alan Hall, has first-hand experience of the many Tax issues facing Expats living in Thailand…

In what circumstances would I become non resident for Tax purposes?

For British Nationals, normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if:

Your absence and employment from the UK covers a complete tax year (that is 6 April to 5 April)
You spend less than 183 days in the UK during the tax year
Your visits to the UK do not average 91 days or more a tax year over a maximum of four years

For a U.S Citizen or resident alien, your worldwide income is generally subject to U.S. income tax regardless of where you are living. Also, you are subject to the same income tax return filing requirements that apply to U.S. citizens or residents living in the United States.

However, several income tax benefits might apply if you meet certain requirements while living abroad. You can talk to me or one of my consultants to find out more.

Am I deemed non-resident for UK tax purposes if I retire abroad?

Unfortunately not. Unlike the working expatriate, you have to provide evidence to HMRC of your intention to remain abroad permanently, such as buying a property as a permanent home.

If this evidence is accepted you will be treated as non-resident and not ordinarily resident so long as your absence has covered a complete tax year and you live abroad for three years or more. Any visits to the UK must not exceed 183 days in any tax year, or 91 days on average. However, if you cannot provide such evidence or confirm that you have gone abroad for a settled purpose, you will remain resident until the situation is reviewed after you have been abroad for three years and it can be evidenced you have left the UK permanently.

Contact us on 0817-643048 for free, no obligation advice…