Determining UK Residency Status Based on Time Spent Abroad for Those Born in the UK ? (1 Viewer)

[MotorhomersRus]

Does anyone know how long you can stay outside the UK in any one year, and would being out of the UK for more than 6 months in that year make you a non-UK resident, considering you were born in the UK?

Thanks

 

[Gromett]

I looked at this 15+ years ago. It may have changed.

But from memory it is more than how much time you spend here. It is your ties. Do you own property, do you have assets here.
From memory you basically had to cut all ties for a significant time to become non resident. I also believe you may have to show your new country of residence to be able to cut tax ties.
You cannot avoid paying taxes everywhere.

 

[nicholsong]

I, as a non-resident am still liable for some UK tax, so I know quite a bit about the rules, but I would not like to give a comprehensive answer.

You are better to go to HMRC webpages for a definitive answer, even then you may not be confident in your own interpretation and ay still want to get a tax accountant's opinion.

You do not say for what tax you are asking.

Residence governs liability for income tax and CGT.

Then there is the question of ;Domicile' which governs liability for Inheritance tax. It is much harder to prove that one has changed one,s Domicile, which is what Gromett is referring to when he mentions cutting ties for a considerable period.

Go to HMRC and/or a tax expert.

 

[Burgo]

There are four quite seperate aspects:
1 Residence
2 Tax Residence
3 Domicile
4 Nationality
The rules for each are different.
And, fwiw, could be different for each of them!

As an example, I have British nationality, but Spanish Residence and Tax Residence (as over 182 days a year here) .
My domicile is arguably still British, as despite living in Spain for nearly 20 years and having owned a Spanish business and receiving a pension here, own a house, etc, I do have a couple of British bank accounts still as well as some (very) modest investments like £10 worth of premium bonds and a son in the UK.

 

[nicholsong]

There are four quite seperate aspects:
1 Residence
2 Tax Residence
3 Domicile
4 Nationality
The rules for each are different.
And, fwiw, could be different for each of them!

As an example, I have British nationality, but Spanish Residence and Tax Residence (as over 182 days a year here) .
My domicile is arguably still British, as despite living in Spain for nearly 20 years and having owned a Spanish business and receiving a pension here, own a house, etc, I do have a couple of British bank accounts still as well as some (very) modest investments like £10 worth of premium bonds and a son in the UK.

This is just one person's example of how the rules might apply according to differing circumstances.

My own example is that I am non-resident, but all my income is taxable in UK, by virtue of its nature. Even as non-resident I would be liable for CGT on the sale of my UK house, but only the gain from 6th April 2015 when the law was changed. I am also UK Domicile for IHT purposes.

These two examples illustrate how the law can apply differently in different personal circumstances.

Thus my advice in post #3 above to read the rules in depth and/or take professional advice.

I doubt whether anyone on this forum, unless a tax professional, could give correct advice in circumstances other than their own.

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[MotorhomersRus]

Thanks for the replies

I've read the HMRC guidelines but couldn't find a clear answer.

We're planning to travel for more than six months a year. After getting a quote from our Nationwide FlexPlus account travel insurance (now covered by Aviva), we found that each trip would be a separate insurance amounting to about £1,000 a year.

I also tried Red Pennant for a quote and encountered two issues:
1. They don’t cover long-haul holidays.
2. The first question was whether we reside in the UK for more than six months.

It appears we can only stay out of the country for six months; otherwise, we void our coverage and aren’t insured.

When I asked why I couldn’t get long-haul insurance elsewhere and that it shouldn’t affect my cover with them, after all they don’t cover long haul, they explained that spending more than six months abroad effectively makes us non-residents of the UK.

I mentioned I'd never heard of this before and needed to check if it's true.
The reply was , that I was the first person to query this question , which seems surprising .

So now need to verify if this is correct

 

[Boldly]

I think being abroad for more than six months would only affect your residence status if it was all spent in the same country.

 

[MitchandJenny]

A way round that must be spend 6 months (and a few extra days) in the UK !!
Or am I being naive..
Mitch

 

[carolyn]

Thanks for the replies

I've read the HMRC guidelines but couldn't find a clear answer.

We're planning to travel for more than six months a year. After getting a quote from our Nationwide FlexPlus account travel insurance (now covered by Aviva), we found that each trip would be a separate insurance amounting to about £1,000 a year.

I also tried Red Pennant for a quote and encountered two issues:
1. They don’t cover long-haul holidays.
2. The first question was whether we reside in the UK for more than six months.

It appears we can only stay out of the country for six months; otherwise, we void our coverage and aren’t insured.

When I asked why I couldn’t get long-haul insurance elsewhere and that it shouldn’t affect my cover with them, after all they don’t cover long haul, they explained that spending more than six months abroad effectively makes us non-residents of the UK.

I mentioned I'd never heard of this before and needed to check if it's true.
The reply was , that I was the first person to query this question , which seems surprising .

So now need to verify if this is correct

It’s a requirement of lots of travel insurance policies that you are resident in the UK for at least 6 months of the year. I know it’s hidden in the small print of ours with our Lloyds bank account. Pre B word I think people just ignored these things and hoped for the best in the EU.

You need to look at specialist backpacker type insurance travel policies. Carpmart Harvey uses a company for longer spells but I think someone else looked and there was an age limit.

From the point of view of anything else I have absolutely no idea I am afraid.

 

[The Wino]

Would there be an issue with staying registered with your GP if non resident?

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[Boldly]

Would there be an issue with staying registered with your GP if non resident?

They should remove you from their list but as they get paid based on patient numbers they tend not to unless you register elsewhere.

 

[DandJ]

When I asked why I couldn’t get long-haul insurance elsewhere and that it shouldn’t affect my cover with them, after all they don’t cover long haul, they explained that spending more than six months abroad effectively makes us non-residents of the UK.

I mentioned I'd never heard of this before and needed to check if it's true.
The reply was , that I was the first person to query this question , which seems surprising .

Weirdly...someone at the insurance co knows this and yet has never had the issue/question before...sounds like made up stuff to me. If I were to set sail from the UK in my yacht (I don't have one...) and sail round the world for 9 mths...do I put my address as 'The Pacific' ?...or all those cyclists on their round the world trips...or kids on gap years travelling to Oz...
I suspect it is in the too hard to handle pile for insurance companies who will seldom have people asking for cover like this.

 

[Gromett]

they explained that spending more than six months abroad effectively makes us non-residents of the UK.

I think perhaps this should be

"they explained that spending more than six months abroad effectively makes us non-residents of the UK for insurance purposes".

Nothing to do with HMRC or legal stuff perhaps. Simply from an insurance point of view and probably specifically their point of view?

 

[MotorhomersRus]

They should remove you from their list but as they get paid based on patient numbers they tend not to unless you register elsewhere.

We wouldn’t be out of the country for more than 3 months at a time . So that wouldn’t be a problem.

 

[MotorhomersRus]

I think perhaps this should be

"they explained that spending more than six months abroad effectively makes us non-residents of the UK for insurance purposes".

Nothing to do with HMRC or legal stuff perhaps. Simply from an insurance point of view and probably specifically their point of view?

I agree but it was relayed to me the way I wrote it …….hence my concern

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[MotorhomersRus]

Weirdly...someone at the insurance co knows this and yet has never had the issue/question before...sounds like made up stuff to me. If I were to set sail from the UK in my yacht (I don't have one...) and sail round the world for 9 mths...do I put my address as 'The Pacific' ?...or all those cyclists on their round the world trips...or kids on gap years travelling to Oz...
I suspect it is in the too hard to handle pile for insurance companies who will seldom have people asking for cover like this.

I agree
Basically it was stated that there members (caravan owners) potted around Europe for six months ………I said I find it highly unlikely that they don’t go on a cruise or fly somewhere on top of that

 

[MotorhomersRus]

Basically if I stay with Nationwide the costs will be
Account = £156 Lasts the
Medical = £110 Last the year
90 Days = £223 Every trip above 31 days in the year.

Total. = £489

There would be a charge for every extension above the 31 days included but I have to confirm that they will cover us for over the 6 months in a year.

 

[MotorhomersRus]

Would there be an issue with staying registered with your GP if non resident?

None I can see as we won’t be out of the country for more than 3 months at one go and still own a house.

 

[gus-lopez]

They should remove you from their list but as they get paid based on patient numbers they tend not to unless you register elsewhere.

Ours in Devon would have you off the list at the slightest sign you were not a resident.

at one go and still own a house.

Unfortunately means nothing nor does the paying of council tax, income tax,national insurance, etc.none makes you a resident.

 

[ChrisL]

None I can see as we won’t be out of the country for more than 3 months at one go and still own a house.

Look at LV premier annual multi trip travel insurance, up to 90 days per trip unlimited trips.

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[MotorhomersRus]

Look at LV premier annual multi trip travel insurance, up to 90 days per trip unlimited trips.

Thank you I will

 

[scotzsue]

Look at LV premier annual multi trip travel insurance, up to 90 days per trip unlimited trips.

So long as you are under 70 and have no or very few pre existing conditions

 

[ChrisL]

So long as you are under 70 and have no or very few pre existing conditions

It's under 79 not 70 and it would depend on what the pre existing conditions are, like most travel insurance.

Are there any age restrictions on travel insurance policies? | LV=

www.lv.com

 

[busby]

I think being abroad for more than six months would only affect your residence status if it was all spent in the same country.

Tread The Globe on You Tube have now been travelling since early 2000..Visited Europe Turkey Georgia Canada.USA Mexico.Japan South Asia ..India and Southern Africa including Mozambique..Due home sept/Oct.. They have struggled with Vehicle insurance and Carne's for the van..Not a clue though what health/travel insurance they have..BUSBY
.

 

[Charente16]

The only way to find out if you qualify for 'Not Resident for Tax Purposes' ie Non Dom status is to apply to HMRC. The fact that you are out of the country for six months doesn't make any difference, as others have pointed out HMRC take a number of factors into account in making their decision. If you stayed in France for six months and a similar amount of time in the UK, you would find yourself paying tax to both countries without the benefit of any Double Taxation Treaty allowances.

I have lived/worked outside the UK for 55 years ,'on and off' and still pay UK Tax on my UK sourced income, my UK 'OAP' Pension is taxed in France under the Double Taxation Agreement between the two countries.

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[scotzsue]

It's under 79 not 70 and it would depend on what the pre existing conditions are, like most travel insurance.

Are there any age restrictions on travel insurance policies? | LV=

www.lv.com

Couldn't get insurance continued this year, only difference an year older

 

[HKF]

We lived in the US for 3 years but retained UK residence.

We now live in France (for the last 3+ years) and are French resident and French tax resident. However, we still retain UK domicile and nationality.

 

[nicholsong]

Thanks for the replies

I've read the HMRC guidelines but couldn't find a clear answer.

We're planning to travel for more than six months a year. After getting a quote from our Nationwide FlexPlus account travel insurance (now covered by Aviva), we found that each trip would be a separate insurance amounting to about £1,000 a year.

I also tried Red Pennant for a quote and encountered two issues:
1. They don’t cover long-haul holidays.
2. The first question was whether we reside in the UK for more than six months.

It appears we can only stay out of the country for six months; otherwise, we void our coverage and aren’t insured.

When I asked why I couldn’t get long-haul insurance elsewhere and that it shouldn’t affect my cover with them, after all they don’t cover long haul, they explained that spending more than six months abroad effectively makes us non-residents of the UK.

I mentioned I'd never heard of this before and needed to check if it's true.
The reply was , that I was the first person to query this question , which seems surprising .

So now need to verify if this is correct

Now that we know that your OP enquiry was for insurance purposes, which was not clear, have you looked in the policies 'Definitions' sections? As to what they define as 'Resident'?

 

[MotorhomersRus]

Now that we know that your OP enquiry was for insurance purposes, which was not clear, have you looked in the policies 'Definitions' sections? As to what they define as 'Resident'?

Sorry it wasn’t clear, but it’s more about being told we’re not a resident of the uk for staying out of the country for over 6 months ! It only came about due to the fact that our travel insurance had changed and I had enquired for a quote from the CMCC..
I can’t consult anything as I named the quote after I was told that !

 

[HKF]

Sorry it wasn’t clear, but it’s more about being told we’re not a resident of the uk for staying out of the country for over 6 months ! It only came about due to the fact that our travel insurance had changed and I had enquired for a quote from the CMCC..
I can’t consult anything as I named the quote after I was told that !

I think like someone said above, you will still be resident, just not resident for insurance purposes.

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