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0 pointsneilwilson4y ago0 comments

That's not correct for UK citizens. We pay tax on an arising basis on global earnings too.

"When you’re UK resident you’re normally taxed on the arising basis of taxation. This means that all your worldwide income and gains will be taxable in the UK. Therefore, even if your foreign income and gains have already been taxed in another country they will still be taxable in the UK and you must declare all of your foreign income and gains on your tax return."

https://www.gov.uk/government/publications/residence-domicil...

The difference is that a UK citizen can become 'non-resident' by moving permanently abroad and there is a 'non-domiciled' option that is wildly complex legally but allows taxation on a remittance basis.

The US tax code applies to its citizens wherever they choose to live in the world with IIRC no exceptions short of renouncing citizenship.

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shapefrog4y ago· 1 in thread

Or you do the "not normal" thing - which by weight of £'s is the normal thing to do by orders of magnitude - and pay tax on a remittance basis only. The choice is yours, pay tax or keep it offshore and dont pay tax.

You can also become non-resident by moving abroad for a short period of time, no need to do so permanently.

neilwilsonOP4y ago

The introduction of the statutory Residence test changed that. If you spend over half the year in the UK, don't have a permanent home overseas as well as in the UK, or work here full time you are resident - and you have to declare all earnings.

Playing domicile and residence games isn't as easy as it used to be.

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