Penn Accounts - Overseas Aspects

Overseas Aspects

If you live in the UK permanently you'll pay tax on overseas income. If you live here temporarily, you'll normally pay tax only on overseas income you bring into the UK. If there's a "double taxation agreement" between the UK and country in which income originates you probably won't have to pay tax twice.

What is Overseas Income?

Overseas income is all your income from outside the UK. The UK excludes the Isle of Man, Channel Islands and the Republic of Ireland.

Overseas income can include:

Pensions

Income from overseas investments

Rental income

Earnings from working abroad

Effect of Residence, Ordinary residence and Domicile

How much income tax you'll pay on overseas income depends on where you're "resident", "ordinarily resident" and "domiciled".

Resident (R)

If you're in the UK for 183 days or more in a tax year, you're a 'resident' for that year for tax purposes

If you come to live in the UK permanently or to remain for three years or more you're resident from the date of arrival

You're also treated as resident if you're in the UK for an average of 91 days or more in a tax year (worked out over a maximum of four consecutive tax years)

Ordinarily Resident (OR)

If you're resident in the uk year after year you will normally be treated as 'ordinarily resident'

You're treated as ordinarily resident in the uk from the date you arrive if it's clear that you intend to stay for at least three years

Domicile

Your domicile is normally acquired at birth, but this is a general law concept covering a range of factors

You can be more than one of these in the UK - or none. Select the relevant link for you below or on the menu to the left to continue:

If you are Resident, Ordinarily Resident and Domiciled

If you are Resident, Domiciled but not Ordinarily Resident

If you are Resident, Ordinarily Resident but not Domiciled

If you are Resident but not Oridinarily Resident or Domiciled

If you are not Resident