Non-Residents - Foreign Citizens with UK Income

All income arising in the UK is liable to tax in the UK, although tax on some pensions and investment income can be restricted to the amount of tax, if any, deducted at source. This is not always beneficial as the resulting loss of personal allowances can lead to a higher tax liability, especially if there are other sources of income.

Where foreign tax is paid on income arising in another country there is relief available of either the amount of tax paid abroad or the tax due in the UK, whichever is higher.

It is possible to have income from employment or self-employment in the UK even when non-resident for tax, it follows that any earnings from work where the duties are performed in the UK are potentially liable to UK tax.

There are certain rules for pension income paid in the UK but relating to an employment where the duties were performed elsewhere. This may mean the income can be excluded from any tax return.

Capital gains tax will be due on the sale of any UK assets if you are resident during the tax year in which the asset is sold, or are only temporarily non-resident. Determining where someone is resident is complex, it is necessary to look at both the number of days spent in the UK in the tax year and also the average over the previous few years.

Hornbeam can advise on your residence position, the liability to UK tax of income arising in the UK, and of course prepare your UK tax return. This includes making sure that the tax is calculated in the manner that is most beneficial.