Expat Forum For People Moving Overseas And Living Abroad banner

Status
Not open for further replies.
1 - 3 of 3 Posts

·
Registered
Joined
·
36 Posts
Discussion Starter #1
Hi again. I’m filling my application for settlement visa and I have been asked a lot of detailed information about savings, income, properties, etc. It is not my intention to transfer all of my investments and savings to the UK; I also intend to keep properties abroad that give me income by rent. Some property is on my name, some on my husband (British) and bank accounts are joined. Would I have to pay taxes on this money if I become resident?
 

·
Administrator
Joined
·
49,808 Posts
Not sure of the British tax system, but normally you pay taxes to the country where investment property is located. I don't think the UK taxes residents on worldwide income, but I'm not entirely sure about that. In any event, depending on how Mexico taxes its citizens, there is probably some sort of tax treaty between the UK and Mexico so you can avoid double taxation.
Cheers,
Bev
 

·
Registered
Joined
·
39,063 Posts
Hi again. I’m filling my application for settlement visa and I have been asked a lot of detailed information about savings, income, properties, etc. It is not my intention to transfer all of my investments and savings to the UK; I also intend to keep properties abroad that give me income by rent. Some property is on my name, some on my husband (British) and bank accounts are joined. Would I have to pay taxes on this money if I become resident?
Tax treatment for income arising outside UK can be very complicated, and you should take professional advice. Basically, if you are resident in UK (stay at least 183 days in UK or if you visit UK regularly and your stay averages more than 91 days in a tax year). If you are resident here, you normally have to pay tax on your worldwide income, but you do get credit for foreign tax paid if double taxation agreement exists. You can choose, even if you are deemed resident in UK for tax purpose, to be taxed on remittance basis (i.e. only taxed on income you bring over to UK), but if it exceeds £2000 a year, you may lose your personal tax allowance in UK.
As you are applying for settlement visa, presumably your intention is to make UK your permanent home and so you will in all probability become resident and ordinarily resident (i.e. staying longer than 2 years) in UK. So you will be almost certain to be taxed on all your incomes anywhere in the world, whether you bring them over to UK or not, by completing annual Self-Assessment tax return. But any tax you pay abroad will be credited against your UK tax liability. Be very wary of hiding your foreign income and capital gains from UK tax authorities, as they are hot on cracking down on tax evasion, with stiff penalties.
But do discuss with a professional advisor (e.g. accountant), as there may be legitimate ways of reducing the amount of overall tax you pay.
 
1 - 3 of 3 Posts
Status
Not open for further replies.
Top