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If you are tax resident in the UK you will have to pay tax here on the income you receive from UK sources. If you are UK domiciled you will also have to pay UK tax on your worldwide income. IF you are resident but not domiciled in the UK you will only have to pay tax on any non UK income if you actually bring the money into the UK- this is called the remittance basis. There are conditions attached to using the remittance basis- see below.

Tax residence is a complicated area and you should always seek advice appropriate to your personal circumstances.

Number of days spent in the UK

If you are in the UK for more than 183 days in any tax year (6th April- 5th April following) you will be resident during that tax year.

Notes from the UK tax authorities on counting days

  • If you are counting your days you must include those days on which you have been in the UK at the end of the day (midnight).
  • If you travel through the UK to somewhere else, you don't count the days when you are in transit - providing your activities while in the UK are substantially related to completing your travel, you do not undertake business or social activities and you leave by the following day.
  • Always remember that the number of days you are in the UK is only one of the things that affect whether or not you are UK resident.

If you're in the UK for fewer than 183 days

Even if you're in the UK for fewer than 183 days in a tax year, you might still be UK resident.

If you come to the UK to live or work you will be resident from your arrival, even if that is part way through the tax year.

In deciding if you are tax resident, the authorities will consider

  • whether you have previously been a UK resident
  • where your family, property, business, work, and social connections are
  • the pattern and purpose of your visits to the UK

You are likely to be resident if, over a period of several years, your presence in the UK becomes part of the regular pattern of your life.

You will not become resident if your visits are for a short-term, temporary purpose only - for example, you come to the UK for a holiday or for a short business project for a foreign employer.

Domicile

Domicile has a greater degree of permanence than residence. When you are born you take the domicile of your father, or if your parents were not married then you take the domicile of your mother. You continue to have this domicile status unless you change it. If your parents domicile changes while you are a dependent child, then your domicile changes too. If, after the age of 16 you permanently settle in a new country you can adopt that country’s domicile.

Remittance basis If you are resident in the UK but not domiciled here then you can chose to pay tax in the UK only on income earned here or brought into the UK, and you don’t have to pay UK tax on overseas income which you leave offshore. If you want to use this basis of taxation and your non-UK income is over £2,000 per year you will lose the right to a UK personal tax free allowance. If you have been UK resident for seven of the last ten tax years you can only continue to use the remittance basis if you pay an annual charge of £30,000. The amount of the charge goes up to £50,000 once you have been UK resident for 12 years.

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Disclaimer:  This note does not contain a full statement of the law and it does not constitute legal advice.  Please seek legal advice if you have any questions about the information set out above.

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