UK personal tax returns for outbound individuals
Any outbound individual leaving the UK can face a number of tax problems. It is important for outbound individuals to get their tax structure correct when leaving the UK.
Warrener Stewart can assist with outbound tax services and will address key questions that all outbound individuals face. The key questions include:
- What UK tax am I liable for when I move abroad?
- Will I be taxed in both countries?
- Do I still owe UK tax if I am non-resident?
- Should I pay Voluntary National Insurance?
Contact us to discuss how we can manage your compliance obligations.
Checklist for action
These are the key action points an individual needs to consider when emigrating from the UK.
| Immigration Tax Planning and Financial Structuring |
| Getting the Date of Departure from the UK Correct/Arrival Date to New Country |
| Inform HMRC of Departure and New Jurisdiction on Arrival |
| Appoint a New Local Accountant to Assist with any Overseas Tax Filings |
| Appoint Warrener Stewart to Assist with remaining UK Tax Filings |
Tax Obligations to the UK
Beware! Just because you have informed the HMRC that you are moving out of the UK or you have already immigrated abroad, doesn’t mean you are no longer UK tax liable. Certain individuals will still have tax obligations to the UK and must therefore be mindful of them to avoid HMRC penalties.
General overview
| UK Capital Gains (such as UK rental properties) |
Tax liable |
| Foreign Capital |
You may be tax liable depending on your residency and domicile status |
| UK Income |
Tax liable |
| Foreign Income |
You may be liable depending on your residency and domicile status |
| UK Inheritance |
Tax liable |
| National Insurance |
You are not required to pay National Insurance if you move abroad. However, you may want to make voluntary contributions if you are planning on returning to the UK in the future, or wish to retain your UK state pension entitlements |
**** You will not have to report your income to HMRC if you have already claimed tax relief under the ‘Double Taxation Agreement’
FAQs
Here are some of the most common questions that we are asked about UK tax liability by outbound individuals:
Q: What UK tax am I liable for when I above abroad?
A: You will be taxed on any UK earnings, UK capital gains, UK inheritance and on UK situated assets. It is important not to ignore your overseas tax liability as well!
Q: Will I be taxed in both countries?
A: Whether or not you will be taxed in two countries is dependent on a number of complex factors and the countries involved. Unfortunately every case is different and hence you should call us to discuss.
Q: Do I still owe UK tax if I am non-resident?
A: If you have UK income, capital gains or inheritance you can be taxed in the UK and possibly in your new country overseas. Unfortunately every case is different and hence you should call us to discuss.
Q: Should I pay Voluntary National Insurance?
A: Paying Voluntary National Insurance is voluntary! Paying a tax is not normally what a tax professional advices but in the case of National Insurance, each year you make a contribution it counts towards your UK state pension as a qualifying tax year. Each qualifying tax year helps determine how much UK State Pension you will receive.