Help With Double Taxation Treaties Uk/Thailand

[chiang mai]

OP - the answer to your question about rental income can be found here:

http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm#6

[chiang mai]

Apologies, this one is more complete.

http://www.hmrc.gov.uk/international/nr-landlords.htm

[chiang mai]

To answer your specific question, no, sorry.

But it really is not that difficult unless someone wants to make it so or if indeed someone has complex tax affairs. In outline: non-resident ex-pats have a tax free allowance, just like their onshore counterparts, that allowance is used to absorb the income that arises in the UK including pensions, real estate income and many investments. Savings interest is also taxable BUT only to the extent of tax that is dedeucted at source and this can easily be mitigated to a greater degree by getting the interest paid gross - where the interest is paid gross there is no further tax liability and it is classified as "forgiven".

Try reading this:

http://www.hmrc.gov....ax-leave-uk.htm

To answer your specific question, no, sorry.

But it really is not that difficult unless someone wants to make it so or if indeed someone has complex tax affairs. In outline: non-resident ex-pats have a tax free allowance, just like their onshore counterparts, that allowance is used to absorb the income that arises in the UK including pensions, real estate income and many investments. Savings interest is also taxable BUT only to the extent of tax that is dedeucted at source and this can easily be mitigated to a greater degree by getting the interest paid gross - where the interest is paid gross there is no further tax liability and it is classified as "forgiven".

Try reading this:

http://www.hmrc.gov....ax-leave-uk.htm

thank you for the link which I have already read together with other notes from Uk IR. Its still (as usual with UK Ir) not 100% clear where does it say "forgiven" if it does then that is 100% clear. As ive said I have been charged extra tax on bank interest years ago and the IR accepted I was non resident and not ordinary resident. The interest put me into higher rate tax band and at the time on querying it I was told by UK IR tax that I was still liable for tax at higher rate. Id be very grateful if anyone can show on Uk IR site clear wording on this since even though I paid extra tax as demanded I am now going to write to Uk IR suggesting they were wrong and asking for a rebate. I shall do this anyway but any reference that is clear would help since in my experience they take a lot of persuading that they are wrong. Ive even had tax demands for corporation tax for a company I had struck off at companies house years before year tax was claimed. The IR admitted the company did not exist for year in question but insisted I was still liable for late penalties for not filling a corporation tax return sinceI never told them I had closed the company and they even admitted all due tax was paid before closure. Total BS of course and in end I just told them to try and get me here. I was told (no way in writing) I probably would not hear anymore about it and have not in last 4 years.

I think what you need to do is find yourself a good accountant. As Chiang Mai has said none of this is that complicated for the average tax accountant but you seem to have been fed some absolute nonsense by the "top" tax advisors and revenue officials you have used in the past. Then again it could be you just asked the wrong questions.

As you are clearly concerned about the BS and misinformation there can be on this site ,possibly, once you have got all the info together to your own satisfaction, you might want to post back to correct some of your rather strident and also misleading earlier assertions on this topic.

Indeed, a retraction of some of your earlier nonesence and a little public grovelling will be well recieved.

[bkk_mike]

CharlieH Thats what I thought, not so HMRC, they say regarding Residence ; ' There is no special definition of the word

' residence ' for tax. It is not just about whether you have a house or flat in the UK or about how much time you spend there, but the the more connections you have with the UK the more likely you are to be a UK resident ( For taxation ). You can be resident in more than one country at the same time '. To me it's just another way of saying you'll be liable for UK tax even if your staying in Thailand.

I think you're confusing residence with domicile. Domicile isn't precisely defined. Residence is. See.

http://www.hmrc.gov....eneral.htm#13nr

Actually the rules for residency change in April this year. All because of Robert Gaines-Cooper who was classified as resident because his wife and kids still lived in the UK even though he was nominally resident in the Seychelles. The 90 day average in the UK stops being the rule to stick to.

The following is a link to the consultation document. The new rules are apparently similar although as little as 20 days working in the UK can apparently change your residency status now. (although if your kids study in the UK they're not going to get you classed as resident so long as they fly out for the summer holidays.)

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CDYQFjAA&url=http%3A%2F%2Fwww.hm-treasury.gov.uk%2Fd%2Fconsult_condoc_statutory_residence.pdf&ei=PWhvT9v4JcrOrQe5zqygDg&usg=AFQjCNHPX7S_wNSSn21zbpFXR_nR3E-m1w

[bkk_mike]

This question fits with my situation, In April I will be 65 and be entitled to the UK state pension. I asked the the TAX man if it will be taxed, since there is a double taxation agreement with Thailand. The answere was, I would be taxed because the double tax agreement was "odd", why odd I don't know.

As a retired civil servant I still have to pay normal UK taxis. Given the latest budget both you and I are going to loose out because of the phasing out of age related personal allowance.

I have been classified as UK non resident for a number of years - it has offered me no benefit. I had to pay VAT on all the associated bills with property renting and subsequent sale.

You should have found, on the sale of the property (so long as you had been out of the country at least 4 years at the time), that you were exempt from capital gains tax on the sale.

That can be a significant benefit to being non-resident (although they are changing the rules for non-resident companies/trusts from April 2013, although not for individuals yet.)