If you are planning on moving to the UK, the tax year in which you acquire UK residency can usually be split into two distinct parts. This is known as split year treatment.
- Period 1: Non-UK residency
- Period 2: UK residency
An advantage of split year treatment is it clearly separates out income and investment gains that accrued before arrival to the UK. This generally means that they will not be subject to UK tax.
In certain circumstances it is not straightforward to ascertain whether you would qualify for split year treatment. If you do not, it could potentially bring overseas income and gains into the scope of UK tax and result in a large tax bill.
Therefore, to bring a level of certainty, if you are considering moving to the UK sometime between 6 April 2021 and 5 April 2022, you would benefit by taking advice before April 5 2021. With less than three months remaining before the new tax year, now is the time to act.
If you are moving to the UK, take a look at our free Understanding UK Residency and the Statutory Residency Test guide.
Get in touch
If you are considering moving to the UK between 6 April 2021 and 5 April 2022, and you would benefit from advice, please get in touch. You can contact us by email or, if you prefer to speak to us, you can reach us in the UK on +44 (0) 208 0044900 or in Hong Kong on +852 39039004.
This article is for information only and does not constitute financial advice. Please do not act based on anything you might read in this article. All contents are based on our understanding of legislation which is subject to change. The information is correct as of 24 January 2021.