UK Temporary Non Residence Tax

If you are leaving the UK for fewer than 5 years, and before leaving you lived in the UK for at least 4 out of 7 of the most recent years, you should be deemed ‘temporarily non resident’ for the purposes of UK income tax.

If you have had a temporary period of non-residence, and you are coming back to the UK, you may have to pay tax on income and commodities that were exempt beforehand.

Whilst you are deemed a non UK-resident, any income coming to you from overseas will not be taxed in the UK. You will not have to pay capital gains tax on your assets, even if these are in the UK.

The only income that will be taxed in the UK whilst you are a non resident will be that which is sourced in the UK.

How does temporary non resident status affect my income tax payments?

If you have temporary non residency status, you do not usually have to pay income tax on any wages you send back to the UK. This applies to money you earn from an employer.

Any earnings from self employment or savings may be subject to UK income tax, if you send it to the UK while you are temporarily non resident. The tax will be levied during the tax year you return to the UK.

Do double taxation treaties apply if I am temporarily non UK resident?

There are double tax treaties between the UK and other countries, which may change the above income tax rules. For example, the treaty may state that the UK cannot tax any income sent to the UK from another country. Therefore, it is best to refer to the specific treaty that exists between the UK and the country you are living in.

How does being temporarily non resident affect capital gains tax?

If you have sold any of your commodities whilst you were temporary non-resident, you may have to pay tax on this capital gain, if you owned the commodity before you left the UK. This will be taxed within the tax year of your return. Again, it is advised to refer to any double taxation treaties between the UK and the country you moved to.


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