Frequently Asked Questions

Got a question? Take a look below or get in touch.

What is your charge out rate?

We fix our fees up front so you don’t need to worry about our charge out rates.  We use £200 plus VAT per hour as our measure for fixing fees but we will always agree a fee with you before we start the work.

Why do I have to tell HMRC about non-UK income and assets?

There is a very complex tax system in place in the UK.  As a general principal, anyone who is UK resident is taxable on their worldwide income and gains.  Also due to changes in recent years, any UK residential property is now within the charge to UK tax regardless of where the owner is resident.  Given the information sharing that takes place around the world now under the Common Reporting Standard (CRS) it is more important than ever for taxpayers to be fully compliant when dealing with their UK tax affairs.  If you do not disclose everything and later find yourself the subject of an investigation, you will have to pay any tax due, plus interest and plus what can be quite substantial penalties.  In the worst cases, you can also be “named and shamed” by HMRC.

Can I just gift my UK residential property to one of my children. None of us live in the UK?

No, due to changes in recent years any transfer of a UK residential property can trigger a CGT liability regardless of where you are resident.  Under UK rules, making a gift is a transfer for tax purposes even though no proceeds are received and any inherent gains in that property will become taxable.  Generally speaking any transfer of beneficial ownership of a UK residential property (apart from to spouse) will be a chargeable event for tax purposes and advice should be sought.  You would also need to consider if any Stamp Duty Land Tax will arise.

Can I transfer my UK residential properties out of my offshore trust structure into my own name?

Never move any UK residential property out of a structure without taking advice first.  Any inherent gains in the property will come into charge and there is likely to also be Stamp Duty Land Tax on the transfer.

I’ve left the UK – do I have to do a tax return?

If you are in self-assessment, you need to continue to complete tax returns after you leave the UK unless HMRC write to you and tell you they have taken you out of the self-assessment system.  You might have to complete tax returns for a number of years before you are removed.

Why do I need to complete a tax return if I don’t live in the UK?

Until HMRC take you out of the system, you need to file returns.  If you have UK source income, such as rental from UK property, a UK pension or income from UK investments, you will need to continue to file a UK tax return going forward as UK source income is always taxable in the UK.

Can I still use a tax treaty for tax planning?

Tax treaties are a very complex area.  They exist to simplify the complex affairs of individuals who have income and gains in different jurisdictions.   We would always recommend taking advice before relying on a treaty but they can be useful in simplifying your tax affairs and ensuring you are taxed in the correct territory on the correct income.  As a basic principle no one should be taxed twice on the same income in more than one territory – but establishing which territory has taxing rights can be complicated.

Do the deemed domicile rules mean that I am no longer a non-dom?

No, domicile is a legal concept.  You may well legally be non-domiciled even if you have lived in the UK for more than 15 years – domicile is an intention based test and will always depend upon your individual circumstances.  The deemed domiciled rules apply purely for tax purposes and treat you as though you were UK domiciled for tax purposes only.

How do I know if I am UK resident?

We have a Statutory Residence Test (SRT) in the UK which will determine whether or not you will considered UK tax resident.  This is quite a substantial set of rules and it would be advisable to take tax advice to establish your position.

What is split year treatment?

Where you leave the UK, or arrive in the UK, part way through a tax year, there are rules that can prevent you being taxed in the UK for the whole tax year.  The rules are found within the SRT provisions and it is recommended to take advice before relying upon split year rules.

Get in Touch

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