RG1.6 - Leaving the UK: Liability for the year of departure

If the individual is treated as not resident and not ordinarily resident from the day after the day of departure

PERSONAL ALLOWANCES

• full personal allowances are due [See RE613, RE1740]

LIABILITY TO UK TAX

• income chargeable to UK tax for the whole of the tax year of departure, including State benefits and untaxed interest is liable, unless you have an exemption authority from CAR Residency in Nottingham [See SE42860 and SE40003]

OVERSEAS INCOME

• overseas income for the period to the day of departure is liable [See AP2396, IM1640 onwards]

UK DIVIDENDS

• see the instructions in AP3076(a)(iv) if the individual has received UK dividends [See AP3076(a)(iv)]

CLAIMS TO RELIEF/EXEMPTION

• refer a claim to relief or exemption at source, under a Double Taxation Agreement, in respect of the following sources of UK income which arise after departure, to CAR Residency in Nottingham:

RE1731

• refer a claim to exemption from UK tax on interest from UK Government 'FOTRA' Securities to CAR Residency in Nottingham

RE1730

• refer a claim to exemption from UK tax on interest from securities of foreign states or on foreign dividends to CAR Residency in Nottingham

CAPITAL GAINS

• see the instructions CG25760 - CG25761 if there are disposals of assets after the day of departure. [See CG25760 - CG25761].

EXAMPLE: Taking a simple example, say the individual is treated as resident and ordinarily resident to 5 November 1994, and not resident and not ordinarily resident thereafter. (R/OR to 5 November 1994, NR/NOR thereafter.)

* including income chargeable under Schedule E (see SE40003)

REPAYMENT

• make any repayment due after following the above guidance, remembering to recover arrears of tax for earlier years, if any
• where an individual leaves the UK after 5 April 1998 and the only source of UK income liable to UK tax is taxed investment income and/or property income received after deduction of tax:

• deal with any cessation repayment claimed
• • send any repayment claim relating to a period after the date of departure from the UK to CAR Residency in Nottingham.