Archive » United Kingdom » Moving to UK from US will I be double taxed?
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| tamar Junior Member Member # 4615 | Posted July 28, 2002 07:45 PM Hi, Wondering if anyone can help. I am moving to the UK in September under the unmarried partners rule for immigration. I therefore will have the right to work, but will I be double taxed? I know that I have to pay tax in the US for my first year in the UK, does anyone know if I will be exempt from UK tax completely or whether I will have to file for a tax return at the end of the financial year? Thanks in advance, Tamar |
| Ala Member Member # 4611 | Posted July 28, 2002 10:37 PM How long are you going to stay in UK? Will you be getting any income from US? |
| tamar Junior Member Member # 4615 | Posted July 29, 2002 06:06 AM I'm staying permanently in the UK and won't be making any money from the US.
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| mintu Junior Member Member # 4583 | Posted July 29, 2002 07:48 AM hello |
| marka Member Member # 1907 | Posted July 29, 2002 10:53 AM Hello, You will not be double taxed per se, but you will have to file a US tax return and a UK self-assesment. There is a tax treaty between the two countries so any tax already paid in one country will not have to be paid in the other. You will have to pay tax on all income in the UK to the Inland revenue in the UK and any income earned in the US will have to be taxed to the US. You will have to declare the income to both contries and then show that you already paid tax on it and how much. This is actually a fairly complicated area of tax preparation and I would recommend professional advice... Cheers, Mark |
| Ala Member Member # 4611 | Posted July 30, 2002 12:06 AM As you decide to stay permanently in UK, from the date of entry you become resident and ordinarylly resident in UK. Therefore liable to tax in UK on your worldwide income which is not much concern to you as you are not going to have any US income. If your effective UK tax rate is higher than the effective US tax rate, you need not pay any taxes on your UK income in US. If it is the other way around you pay the UK tax and any excess US tax as well. In both scenarios, tax return need to be filed with each Revenue. Presumably, you may be paying tax in US in the 1st year as you enter UK half way through the tax year, effectively reducing your UK tax rate. But, mostly depend on your income. If you planned to work abroad, on and off, while in UK employment, further tax planning measures should be taken. |
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