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Non-Resident Tax

Tax planning for non-UK residents to managing UK tax exposure whilst balancing cross-border considerations.

Understanding your needs

The modern world is truly global and an increasing number of our clients consider leaving the UK to take up residence on other shores.

People choose to become resident elsewhere for a host of reasons, but one of them is to effectively manage exposure to UK taxation. 

With high rates of income tax (up to 45%) and a 40% rate of inheritance tax (IHT), many seek to be resident elsewhere so that they can better preserve their wealth for the future.

When are you considered to be non-resident?

The UK tax legislation contains a formulaic method to ‘break’ UK tax residency, known as the Statutory Residency Test (SRT). 

This produces a clear outcome and allows you to carefully plan your time in the UK, but the operational rules are complex and the test must be applied to every tax year. Not only this, the UK day count can vary depending on your specific circumstances and each year.

Your domicile status is critical to your exposure to UK IHT. Whilst you may have successfully become non-resident under the SRT, you may be stuck in the UK IHT net because you remain UK domiciled. 

We can review and advise on your residency and domicile position, helping you to take the necessary steps should you want to ‘break’ your UK domicile status.

Whilst breaking UK tax residency deals with one side of the position, it is also necessary to consider the tax rules in your country of residence. 

Our people, your partners

We have extensive experience in international personal tax planning, with emphasis on managing exposure to UK taxation whilst balancing cross-border considerations.

Not only this, our team of expert tax advisers also deals with professionals in a number of other jurisdictions, so we can manage your transition away from the UK and to the new country, and take into account whether any tax planning should be undertaken in advance. 

Our role as your trusted tax adviser is to bring together the two sides, so that your global tax position is fully optimised. 

We can also connect you to the right people to help with your eventual relocation, assisting you to settle into life in your new country.

How we can help

The decision to leave the UK and the practicalities around moving, can be stressful and challenging. 

Given our experience in this area, we want to provide you with considered and practical advice, to help you make the right decision and work alongside you on the steps to achieve your objectives.

We can assist with:

  • Advising on UK residency and your domicile status
  • UK tax advice for those arriving and leaving the UK
  • Consideration of which tax jurisdictions may be appropriate to relocate to
  • Bespoke advice in relation to succession planning and wealth preservation
  • Liaising with professionals across jurisdictions to optimise your global tax position
  • Tax reviews and health-checks of existing structures in advance of relocation
  • Tax-efficient structuring of remuneration packages for internationally mobile employees
Our role as your trusted tax adviser is to ensure your global tax position is fully optimised.
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