At Elena Meskhi & Co we work with many individuals who move to the UK for a whole range of reasons: their job, their family or simply because they fell in love with a British citizen. Having been through it ourselves (Elena is a Russian national), we appreciate just how difficult and daunting this experience can well be. Also, there is little question that the more knowledge you have, the more empowered you are to make the right decisions once you land. In fact, we encourage all hopeful British citizens to do some serious research before arriving on our shores to make sure they are tax efficient, compliant and using their money wisely.
Now the first question is: will you suffer a financial burden if you do decide to move to the UK? If you are a UK resident, then you may well have to pay income tax and capital gains tax on income earned in the UK, as well as overseas. For obvious reasons, this can be particularly painful and cause individuals to pay out massive amounts in tax.
Of course, the first question is: how do you determine when you are a resident of the UK? The British government introduced a Statutory Residence Test in April 2013, which determines your tax status in the UK. Now, this piece of legislation is somewhat complex, and much of its information is outside the remit of this article. However, the critical point is that you are considered a resident if:- You spend at least 183 days in the UK in the tax year- You have a home in the UK during all or part of the tax year, and you reside in that home for at least 30 days of the tax year- You work full time in the UK for the over 75% of the tax year
Now, if you don’t fulfil all of these criteria it doesn’t necessarily mean you aren’t deemed a UK resident, it just means you may be subject to some further tests which are known as sufficient ties tests and include four tests: accommodation, work, 90-day, and country, which establish if you have a family member, a place to live, a work tie, spend more than 90 days in the country or are present in the country for the highest number of days in the tax year.
It may also depend on where you were born; as this could well impact whether or not you are a resident of the UK.
However, we feel compelled to add it’s not all doom and gloom. If you do not bring funds into the UK, then apparently there is no tax to pay at all. So more than that, if you structure your capital correctly, then there is the option of avoiding tax altogether when you enter the country.While this overview gives a sweep of the issues, immigration is a complex and complicated aspect of law, and we would encourage all those who are anxious about their status to consult professionals to carefully establish an equilibrium between their personal tastes and fiscal protection.------If you have any further questions or would like us to help assist you in moving to the UK. Please do feel free to give us a call on 02032878706 or drop us an email on info@elenameskhi.com
