How can British expats legally avoid paying tax when they return to become residents in the UK?
What are the legal ways to avoind paying tax after living outside of the UK for 20 or 30 years?
What can be done to avoid paying taxes on returning to the UK?
How can the UK authorities and the Inland Revenue even know if you were working overseas?
How can they even tell how much money you have? A British expat returning to the UK could of spent all their earnings and hence don't have money to pay any taxes,
How much do the authorities know about where you worked overseas and how do they know how much money you actually have on return to the UK?
- STEPHENLv 79 months ago
They don't. You've been listening to rumours from people that don't know what they're talking about.
- 9 months ago
Once you have been non resident for a year and a day, you are no longer liable for UK tax on your worldwide earnings or capital gains. You generally become ordinarily resident in the UK 6 months after your return but it could be sooner if you clearly have 'intent to settle'.
You will not pay taxes on money you earned whilst you were non resident even if/when you return to the UK. Does not matter where that money is held. Capital is not taxed in the UK. Well for now, under a Goblin government we could get a wealth tax. Until then you will only be taxed on income, capital gains, dividends or interest earned AFTER you have become ordinarily resident.
If you want to continue to pay no tax even after you return, you will have to be classified as a non-dom.
The UK authorities will know you were working overseas because you were not resident for tax purposes.
The UK authorities do not care where you worked overseas or how you spent your money. If, after you return, you try to hide your assets to avoid paying capital gains, you will be caught.. All countries cross report. So, for example, when I ceased being resident in Switzerland I had to give my Swiss bank my address to the UK. UK tax authorities were immediately notified by the Swiss authorities. As I was not ordinarily resident in the UK it did not matter but had I been resident, the tax man would have been at my door pdq.
- MaxiLv 79 months ago
ANY money over £10k that goes into the UK banking system or is transfered, the bank is legally obligated to report to HMRC