The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Liability to UK tax depends on two key factors: residence and domicile. Residence refers to the individual’s tax status on a year by year basis. Domicile is the place which a person regards as his true home. See the Residence ― overview and Domicile guidance notes.
An individual who is notresident and / or notdomiciled or deemed domiciled in the UK may be entitled to some tax reliefs and exemptions on his UK employment earnings.
Up until 5 April 2013, a taxpayer’s ordinary residence status was the third key factor. Ordinary residence arises as a result of a settled purpose and so looks at the position over the longer term. The concept was abolished for tax purposes from 6 April 2013, although there are transitional provisions for up to three years for those who are notordinarily resident in the UK and are adversely affected by the changes. Therefore you may have to consider a taxpayer’s ordinary residence status until 2015/16. See the Ordinary residence ― years to 5 April 2013 and Ordinary residence ― transitional rules (2013/14 to 2015/16) guidance notes.
This guidance note discusses the employment earnings of the following types of employee:
the UK non-resident
the employee who is UK resident but notdomiciled or deemed domiciled
For discussion of the employer’s position, see the Inbound secondment payroll issues guidance note.
Non-residence is discussed in the Residence ― overview guidance note. Non-residents are taxable on ‘general earnings’ in respect of duties carried on in the UK for a tax year. ‘General earnings’ covers salary and most taxable benefits received by employees from their employer, see the Employment income guidance note.
Employment-related securities (such as share options) are notclassified as ‘general earnings’.
Employment-related securities (such as share options) are notclassified as ‘general earnings’. Since 6 April 2015 the rules covering employment-related securities of internationally mobile workers, found within ITEPA 2003, ss 41F–41L, apply
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
If an individual sells a chargeable asset and makes an allowable loss, how can this be relieved?First of all, since the simplification of capital gains tax from 6 April 2008, the proforma to calculate a loss is the same as the proforma to calculate a gain. See the Basic calculation principles of
Introduction to the regimeThe aim of the patent box regime is to provide an incentive for companies to develop and retain patents and other qualifying intellectual property within the UK as part of the Government’s growth agenda. Finance Act 2012 originally introduced the legislation governing the
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
Trust property, which is the subject of a qualifying interest in possession (QIIP), may become chargeable to inheritance tax on the following occasions:•on the death of the beneficiary with the interest in possession•on the death of the beneficiary within seven years after a transfer or lifetime