Personal Tax

Pre-departure planning

Produced by Tolley
  • 22 Mar 2022 09:46

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax 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?
  • Record-keeping
  • Returning to the UK

Pre-departure planning

This guidance note explains some of the tax traps and opportunities for people leaving the UK on or after 6 April 2013. It is an outline, and specific advice may need to be taken for individual clients, especially those with complicated affairs. For reporting requirements, see the Reporting requirements on leaving the UK guidance note.

It is recommended that you read the Residence - issues on leaving the UK (2013/14 onwards) guidance note before continuing.

This guidance note does not consider planning for national insurance contributions. For the national insurance position, see:

  1. the GOV.UK website

  2. the EU provisions, Social security agreements and Moving to and from non-agreement countries guidance notes

  3. Tolley’s National Insurance Contributions 2021/22 Chapter 52.1–52.63

For commentary on pre-departure planning that can be undertaken by the employer, see the Pre-departure planning from an employer’s perspective guidance note.

Income tax

Some planning points on departure include:

  1. ensuring 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. transfering any sources of foreign income (eg shares or bonds) from a resident spouse / civil partner to a non-resident spouse / civil partner so that future income arises free of UK tax. The transfer will normally be outside the scope of CGT and is not within the transfer of assets abroad rules (as spouses are considered to be the same person under ITA 2007, s 714(4)), see the Transfer of assets abroad

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