Pre-entry planning

Produced by Tolley
Pre-entry planning

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Pre-entry planning
  • Introduction
  • Remaining non-resident
  • Automatic overseas tests
  • Automatic UK tests
  • Sufficient ties test
  • The remittance basis
  • Pre-entry crystallisation of gains
  • Planning points
  • Using travel reliefs
  • More...

Introduction

A person who is planning to come to the UK should consider the possible tax consequences before he arrives here, so as to maximise the chances of reducing or eliminating any UK tax. It will be easier to understand why certain pre-entry planning is necessary if you have first read the Residence ― overview, Determining residence status (2013/14 onwards), Residence ― issues on coming to the UK (2013/14 onwards) and Domicile guidance notes.

If the individual is planning to work in the UK, then you should also read the Coming to the UK ― UK employment guidance note. If he continues to have, or is beginning, an employment with a foreign employer, see the Foreign employment guidance note.

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 2019/20 Chapter 51.1–51.64

For commentary on pre-arrival planning which can be undertaken by the employer, see the Pre-entry planning for UK inbound assignees from an employer's perspective guidance note.

The extent to which planning is necessary clearly varies by individual. The person who is here for a short-term project, leaving his family in his home country, will have different issues to consider than the person who comes seeking permanent employment, for long-term study, or to get married. Individual advice may thus be necessary and this guidance note is only a guide. Note in particular that this guidance note does not cover planning involving trusts. For this, see Simon’s Taxes Division C4.4.

Remaining non-resident

The first thing to consider is whether itis possible for the individual to come to the UK without becoming resident here.

As the statutory residence test is an analysis of facts which can only be undertaken after the end of the tax year, itis difficult to advise the individual with certainty that he can maintain his non-residence status, as

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