Lupo81

Hi all. I will be seeking professional advice, but am hoping to maybe get some tips from your knowledgable selves! I left the UK in October 2014 and have been in Australia since that time. I returned to the UK due to COVID several months ago and would like to stay longer to help look after my mum and granny. If I stay more than an additional 2 months though, I will be considered a UK tax resident under the SRT. From Australia’s perspective, I believe that I am still an Australian resident (I am currently receiving Jobkeeper from my Australian employer and have a pending citizenship application but no longer have a ‘home’ in Australia). If I do stay long enough in the UK to become a resident what are the implications tax wise? I understand that the Double Tax Treaty applies a tiebreaker in the case of dual UK and AU residency. In that instance the UK would ‘win’ as that will be the only place where I have a permanent home. I do however have $20k of capital losses in Australia from the previous tax year that I would like to use by selling some shares before becoming a UK resident again. This is attractive since I have been a non-resident in the UK for 5 complete tax years so I will be exempt from UK CGT on those sales. I would therefore like to claim split year treatment as I will soon be having my only home in the UK (case 4). This would allow me to sell these shares soon, whilst being considered a UK non-resident (and utilise the AUD loss) before becoming a UK resident. Could this be possible? I cannot find any information of how the residency tiebreaker within the DTA will liaise with split year treatment. Many thanks