Pre-departure planning

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Pre-departure planning
  • Income tax
  • Principal private residence relief
  • UK property remains a residence for the PPR rules
  • Foreign currency accounts
  • Disposals after the date of departure
  • When is there a disposal of land?
  • When is there a disposal of other assets?
  • Disposals of UK residential property by non-residents
  • Forms telling HMRC about the departure
  • More...

Pre-departure planning

This Practice Note explains some of the tax traps and opportunities for people leaving the UK. It is an outline, and specific advice may need to be taken for individual clients, especially those with complicated affairs.

Income tax

It is recommended that you first read the Residence—issues on leaving the UK after 5 April 2013 Practice Note.

Some planning points on departure include:

  1. ensure that a contract for providing services overseas was made overseas, as there is a risk that income from an employment contract made in the UK might be regarded as a UK asset

  2. the transfer to a non-resident spouse/civil partner of any sources of foreign income, such as shares or bonds, so that future income arises free of UK tax. The transfer will normally be outside the scope of capital gains tax (CGT) and is not within the transfer of assets abroad rules, as spouses are considered to be the same person under section 714(4) of the Income Tax Act 2007 (ITA 2007)) (see Practice Note: Transfer of assets abroad—introduction for an introduction to these rules)

  3. authorised unit trusts and open-ended investment companies pay interest gross to non-residents who have made the appropriate residence declaration using Form R105(AFA)

  4. similarly, building society and bank interest can be paid gross to those who are not resident on completion of Form R105

  5. if property is

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