UK Tax in first years arrival

[Don QuayPoly]

Hi all you wise people. 

I have what some might think is a dumb question, and I think I know the answer already , but Mrs Quaypoly has sown seeds of doubt, so here goes -

If we move back to the UK (from AUS) part way through the UK tax year... lets say for example we land in the UK on 1st Feb 2023. Would I have to declare my AU income received prior to 1st Feb 2023 to the UK tax man come tax time in APR 2023 ? Any advice gratefully received

Don

[Ken]

4 hours ago, Don QuayPoly said:

Hi all you wise people. 

I have what some might think is a dumb question, and I think I know the answer already , but Mrs Quaypoly has sown seeds of doubt, so here goes -

If we move back to the UK (from AUS) part way through the UK tax year... lets say for example we land in the UK on 1st Feb 2023. Would I have to declare my AU income received prior to 1st Feb 2023 to the UK tax man come tax time in APR 2023 ? Any advice gratefully received

Don

No. You report on your tax return that you meet the requirement for split year treatment (box 3 of the Residence status page) and enter the date you returned to the UK (box 6 of the Residence status page). You then don't need to report any foreign income received before that date (1st Feb 2023 in your example) but you would still have to report all foreign income received after that date and any UK income received at any point in the year.

[Don QuayPoly]

Thanks Ken. As I suspected. Really appreciate your reply 

[Alan Collett]

For how long have you been living in Australia?

Best regards.

[Don QuayPoly]

On 29/11/2022 at 10:58, Alan Collett said:

For how long have you been living in Australia?

Best regards.

Hi Alan sorry for the long delay. I have been living in Oz 15 years - my wife is a born Australian. We want to make sure we do things right  - so to speak, and have no nasty tax surprises in the process. I guess it would be wise to seek the advice of a guy like yourself in our situation, as the amount we would be taking from Aus , including house sale and super and savings etc would be in the region of $2-3m.

[Alan Collett]

2 hours ago, Don QuayPoly said:

Hi Alan sorry for the long delay. I have been living in Oz 15 years - my wife is a born Australian. We want to make sure we do things right  - so to speak, and have no nasty tax surprises in the process. I guess it would be wise to seek the advice of a guy like yourself in our situation, as the amount we would be taking from Aus , including house sale and super and savings etc would be in the region of $2-3m.

Yes, the timing of the sale of property and the releasing funds from Australian superannuation can be important in the context of tax outcomes.

Please feel able to send a private message, or to send an email to me at bdh Tax if you'd like to explore these issues more fully.

Best regards.

[Marisawright]

3 hours ago, Don QuayPoly said:

Hi Alan sorry for the long delay. I have been living in Oz 15 years - my wife is a born Australian. We want to make sure we do things right  - so to speak, and have no nasty tax surprises in the process. I guess it would be wise to seek the advice of a guy like yourself in our situation, as the amount we would be taking from Aus , including house sale and super and savings etc would be in the region of $2-3m.

I would definitely recommend Alan.  It's absolutely crucial that you use an accountant who knows both British and Australian tax.   They're inter-related and if you consult someone who knows only UK tax or only knows Aussie tax, you can get in an awful lot of strife.

Superannuation is especially thorny.  Though it's tax-free in Australia, it's not tax-free in the UK.   Do the wrong thing and the British taxman will grab about a third of it in tax!

[Don QuayPoly]

On 10/11/2022 at 17:58, Ken said:

No. You report on your tax return that you meet the requirement for split year treatment (box 3 of the Residence status page) and enter the date you returned to the UK (box 6 of the Residence status page). You then don't need to report any foreign income received before that date (1st Feb 2023 in your example) but you would still have to report all foreign income received after that date and any UK income received at any point in the year.

I am REALLY struggling to understand the requirements in order  to claim split year on the form. Is it simple. Am I missing something ?

[Alan Collett]

2 minutes ago, Don QuayPoly said:

I am REALLY struggling to understand the requirements in order  to claim split year on the form. Is it simple. Am I missing something ?

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3#split-years

If you're having difficulty with this you are very welcome to make enquiry of us with a view to formal assistance.

Feel able to contact the Epsom, Surrey office of bdh Tax.

Best regards.

[Ken]

20 hours ago, Don QuayPoly said:

I am REALLY struggling to understand the requirements in order  to claim split year on the form. Is it simple. Am I missing something ?

According to your posts you've been living in Australia for the last 15 years, so yes it should be simple, but if that doesn't tell the full story do engage an accountant to do it for you.