UK tax doesn't necessarily stop just because you live abroad. Residency and domicile rules are becoming increasingly complicated, even while the workforce becomes more mobile than it ever has been.

If you are an entrepreneur, employee or retiree looking to settle here or across waters, Hazlewoods can help you on every step of your journey.

How can we help you?

Determining residence status for UK taxes – personal, trusts and corporate
UK taxation and filing responsibilities
Worldwide tax advice through our membership of HLB International
Onshore and offshore structuring and planning
Immigration and emigration advice across all taxes, be it personal, corporate or VAT
Advice on domicile status for individuals and trustees

Statutory Residence Test advice

Since 2013, the statutory residence test (SRT) was introduced that then wiped away all previous case law and the '90 day' rule. It is a series of complicated tests to determine the maximum number of days an individual may be present in the UK without becoming a tax resident. We regularly guide our clients through the process, so please contact our expert tax adviser Glenn Collingbourne for further advice.

Residency or domicile?

In the UK, tax residency and domicile often get mixed up, and the phrases used interchangeably, when in fact, it is possible to be tax resident and non-domiciled at the same time, as well as the reverse. Both are defined quite differently, and have distinct affects for UK taxation.

Tax residency is determined by the very formulaic Statutory Residence Test, and is usually associated with chargeability to income tax and capital gains tax. There is a limited cross over, where so-called “non-doms” can get income, capital and inheritance tax advantages, even if they are UK tax resident.

Domicile however, is based on a long history of case law, supplemented by the “deemed domicile” legislation. Domicile is the main driver behind whether someone will pay inheritance tax on just their UK assets, or their world-wide estate.

In the UK, there is a limited cross over, where so-called “non-doms” can get income, capital and inheritance tax advantages, even if they are UK tax resident. If you would like advice on your own individual status, please contact the team.

Client case study

Individual coming to the UK for long holidays

Background: An individual domiciled in another country was considering spending regular long holidays in the UK, but without giving up her home overseas. This was to spend time with extended family who had settled here.The circumstances of this case meant that the amount of time spent in the UK would cause all overseas income to be taxed in the UK.

How we helped: By utilising provisions in the double taxation treaty with the overseas jurisdiction, we were able to ensure the individual was ‘treaty non-resident’ allowing them to spend more time with loved ones at no extra tax cost.

Client case study

Determination of corporate residency

Background: We were approached by an offshore company trading in the Far East looking to expand its operation to the UK by formation of a UK company. Some board members would be relocating to the UK while some would regularly travel to the UK for business.

How we helped: The initial enquiry to us was in connection with basic compliance work for the UK entity, but after analysing the structure it quickly became apparent that the relocation of the board of directors would bring the offshore profits into UK corporation tax, even though the trade remained abroad. By recommending a change to the decision hierarchy, the non-UK profits were retained abroad, leaving only the UK profits taxable as originally intended.

Client case study

Determination of residency for trustees

Background: An individual domiciled overseas was relocating to the UK. As the individual was the settlor and trustee of an offshore trust, concerns were raised over whether the trustees would be taxed in the UK. This advice was paramount because a large capital gain was soon to accrue from the sale of development land overseas.

How we helped: We provided advice to ensure that the trust’s offshore status was not jeopardised, and assisted the trustees in ensuring that they complied with their UK tax filing responsibilities, providing peace of mind in an area of taxation that is especially complicated and where the trustees may be personally held liable.

Other tax services

Tax

From tax returns to complex tax planning, our experienced, tax-qualified advisers will work with you to appreciate your needs and deliver the results you want.

International Tax

Whether you are establishing a business in the UK, relocating staff abroad or to the UK, or returning home from overseas, we can help. With advice on taxation of overseas remuneration, tax residency status and compliance matters, let our experts guide you through the complexities.

Featured news

Tax update: Thinking of moving overseas talent to the UK?

Monday 3 July 2023

Where an overseas employer sends staff to the UK to work, the rules are challenging, and even the country where the employer is resident can affect how UK payroll must be operated. Find out more in our second article on overseas employment.

Tax update: Sending employees overseas

Tuesday 27 June 2023

What happens if your business needs to recruit staff living and working for you overseas, or relocate part of your workforce to foreign countries due to business demands, or to encourage staff retention?