UK resident going overseas

Hi all,

I have a client who is a UK resident with property income and employment. She is leaving the country to go outside of the EU in the current tax year and will be gone for two years.

I understand that she needs to do a P85 form when she leaves and that if she is gone for a complete tax year she will be non resident.

Therefore say she leaves in Jan 14 and comes back Jan 16:

13/14 - Fill in P85, still resident for whole tax year despite leaving part way (as not gone for a whole tax year)? Will she be taxed on world wide income in this year?

14/15 - Gone for whole tax year so non resident and taxed in country of residence but will pay tax on rental income. If she elects to still be UK resident she would pay tax on world wide income in the UK (less credits from overseas).

15/16 - Comes back part way through tax year (Jan 16) and becomes a UK resident again. Liable to UK tax on rental but will she be liable to pay tax on worldwide income?

As you can see I'm not that confident on all this, but would rather use some one else's experience before researching.

Thanks

Steve

Comments

  • Ellabobbin
    Ellabobbin Registered Posts: 92 ? ? ?
    Hi Steve,

    Is she going overseas on an employment contract?
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