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ARTICLE · 28 OCTOBER 2003

In Touch With Tax

Howard Kennedy LLP
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Bo Kehinde
Bo Kehinde

Originally published by Expat Investor - January/February 2003

Bo Kehinde, a tax adviser with law firm Howard Kennedy , has put together some vital tips for keeping expats on track with UK tax management. Mr Kehinde begins by explaining who qualifies as a non-UK resident for tax purposes.

Your UK residence status ceases from the day following your departure to the day before you return, provided:

  • You go abroad to work full time under a contract of employment for a period that covers at least one full tax year (i.e 6 April to 5 April).
  • Your visits to the UK during a four year period of absence do not average more than three months per tax year.
  • Your visits to the UK do not amount to six months in any one tax year.

What to do before you leave the UK

  • Submit form P85 to the Inland Revenue to determine your residency status.
  • Claim refunds of UK tax to which you may be entitled.
  • Tax plan according to the rules and regulations of the country where you will work.
  • Review your social security, medical insurance and sick pay position with specific regards to the country or countries you will be visiting.
  • Consider how your absence will affect your share options or pension benefits provided by your employer.
  • Consider carefully the benefits of waiting until you are non-resident before selling assets which may be subject to capital gains tax (CGT).
  • Consider matters relating to letting your home.
  • Inform banks and building societies where you hold accounts so that interest may be received gross.

    • Bo Kehinde is a tax adviser at Howard Kennedy, the London-based law firm.

    The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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