Residency ruling set for April 2013


With the 2012 UK Budget just one week ago, expatriates have been reminded that the real date to look out for is still one year away- the new HMRC UK residency rules and create clearer guidelines for expat taxes.

The residency test ruling was previously due this April, but has been delayed till next year so HMRC can take further consultation on the subject.

It is thought that the new residency test will place expats into one of three categories to determine residency. One expert said: “For example, Category A might be completely non-resident; B will be quasi-resident; down to D which would be the category where HMRC would view an expat as being pretty well UK resident. Which category an expat fits into depends on issues such as where the kids are educated, where the spouse is living, houses owned and other economic influences coming from the UK. Expats will have to start separating themselves from the UK as much as possible if they want to remain non-resident for UK tax purposes.”

Hopefully, the new rules will clarify al lot of the confusion that has up till now affected many expatriates.