Taxation on UK income while living abroad

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Hello, I am new to the forum and this is my first post. I was wondering how a UK resident who has moved abroad is taxed on UK income? e.g rental income, interest and pensions.
Is there any difference if the move is to another EU country, commonwealth or ROW?
Regards,
Mike
 

Becky

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Hi there and welcome to the forums :)

Residence is a complicated matter at the best of times, and unfortunately new legislation came into force on 6 April 2013. Breaking residence can be more difficult than you think, so it is worth seeking advice from a specialist on the matter.

Does the query relate to you or a client?

There is some basic info here which might be useful to you: HM Revenue & Customs: Meaning of 'residence' and how it affects your tax
 
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Hello Becky,
Thanks for your reply.
The query relates to my daughter who is moving to Spain in August. She is planning to live and work there for at least a year.
Regards,
Mike
 

Becky

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If she is moving abroad for full time employment and will be out of the UK for a complete tax year, then it might be possible for her to be non-resident for tax purposes for her entire period abroad. I think the contract needs to be in place before departure though, so if she leaves the UK before finding work in Spain this treatment will not apply.

It is worth bearing in mind that if she leaves the UK during one tax year, and arrives back in the following tax year, it is likely that she will be treated as UK resident for the entire period if she has not been absent from the UK for a complete tax year.

There is further guidance here: http://www.hmrc.gov.uk/cnr/hmrc6.pdf (Ch 8 will be of most interest to you)

However please note that this document is subject to revision to take into account the changes which came into force on 6 April 2013 - I am unaware of what impact the changes could have on what I have stated above.
 

Becky

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I should add - if she does not break UK residence during her time abroad she will be taxed in the UK during that time on her worldwide income.
 
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Thanks Becky, I'll check out the HMRC website. The initial contract is for a year, August to July so will cross a tax year. Whether the contract will be extended is subject to agreement.
Regards, Mike
 

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