RG2.8 - Coming to the UK: The liability for the year of arrival

If, from the day of arrival, the individual is

  • resident and ordinarily resident [See EP8102]

or

  • resident but not ordinarily resident

PERSONAL ALLOWANCES

  • full personal allowances are due (See RE1740)

LIABILITY TO UK TAX

  • income chargeable to UK tax for the whole of the tax year of arrival, including untaxed interest is liable, unless you have an exemption authority from CAR Residency in Nottingham up to the date of arrival (refer there if you have any questions about an exemption authority)[See SE42860 and SE40003]

OVERSEAS INCOME

  • overseas income is chargeable, on the arising or remittance basis as appropriate, for the period from the day of arrival to 5 April next [See AP2396 and IM1640 onwards]

DOMICILE

  • go to Chapter 3 if the individual claims to be not domiciled in the UK [See SE41050 and IM1635]

CAPITAL GAINS

  • see the instructions at CG25720-CG25721 and CG25740 if the individual has disposed of any assets before the day of arrival [See Capital gains CG25720]

EXAMPLE

Take a simple example: say the individual is treated as

  • either not resident and not ordinarily resident to 5 November 1994, resident and ordinarily resident thereafter (NR/NOR to 5 November 1994, R/OR thereafter),
  • or not resident and not ordinarily resident to 5 November 1994, resident but not ordinarily resident thereafter (NR/NOR to 5 November 1994, R but NOR thereafter):
NOT RESIDENT PERIODRESIDENT PERIOD
LIABLE

UK sources* except

  • Government 'FOTRA' securities (RE1731)
  • Income relieved under a double taxation agreement
LIABLE

UK sources*

(Unless NOR - RE1731)

NOT LIABLE

Overseas sources

LIABLE

Overseas sources


* including income chargeable under Schedule E (see SE40003).