If you\u2019re leaving the UK to live or work abroad, it\u2019s possible that you may be entitled to a tax refund. As ever, the outcome depends on your personal circumstances and tax status, and it\u2019s important to let HMRC know about exactly when you move overseas so that the right calculations can be made.<\/p>\n
If you\u2019re a UK resident and are moving abroad it\u2019s likely that you\u2019ll become non-UK resident for tax reasons and pay tax in the country in which you\u2019re living rather than the UK. Claims can also be made by those who have been living or working in the UK (and who have consequently been in the UK tax net) and who are now moving to another country or perhaps returning to their home country.<\/p>\n
In the UK, every individual is generally entitled to a set of tax-free personal allowances each year. If you haven\u2019t used these allowances, you may be entitled to a refund. There are another two situations which may also prompt a tax refund:<\/p>\n
Claiming tax back will mean you\u2019ll need to complete some specific forms from HMRC. It can be useful to work with a tax expert, especially if your tax affairs are complicated. There are also time limits to be aware of, and any claims must generally be made some time in the four years from the end of the tax year where you think you\u2019ve overpaid.<\/p>\n
Situations in which you may have overpaid Income Tax generally occur when you don\u2019t use all your personal allowance or you\u2019ve pre-paid tax and experience a change of circumstances or resident status.<\/p>\n
You may find yourself having overpaid Capital Gains Tax (CGT) if you sell a UK property during the tax year and pay the tax due within 60 days based on your estimated taxable income for the year. If the actual taxable income turns out to be less, the overpaid Capital Gains Tax can be reclaimed on your Tax Return.<\/p>\n
You may be able to claim tax relief on your employment expenses too. This is because there are reliefs which can reduce the tax bill on your employment income, including any business expenses which are \u2018wholly, exclusively and necessarily incurred in the performance of the duties of your employment\u2019. For this type of claim it\u2019s vital to keep accurate records and evidence.<\/p>\n
Do be aware that if your employer reimburses you for employment expenses then a claim won\u2019t be able to be made. To manage these claims, you\u2019ll need to make use of a specific form or handle things through the submission of your annual self-assessment Tax Return.<\/p>\n
Our team has helped many British expats to exit and re-enter the UK tax system. Many have also had the experience of living or working overseas. With offices around the world, our team can provide up-to-date and intelligent information to help you make sense of the UK tax system. For more support contact our team<\/a>.<\/p>\n \u00a0<\/p>\n\n\n This article is distributed for educational purposes only and should not be considered financial advice.<\/p>\n\n\n\n The opinions stated in this document are those of the author and do not necessarily represent the view of Progeny and should not be relied upon to make a financial decision.<\/p>\n\n\n\n Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time.<\/p>\n\n\n\n The Financial Conduct Authority does not regulate will writing and some forms of estate planning. <\/p>\n\n\n\n The information provided within this guide is of a generic nature, which is not specific to your personal circumstances and should not be taken as advice or recommendation. Individuals must not rely on this information to make any financial or investment decision. Before making any decision, we recommend you consult your financial planner to consider your particular investment objectives, financial situation, and individual needs. Any tax treatment is dependent on the individual circumstances of each client and may be subject to change in future. This email\/webpage may contain links to third\u2011party websites that are not operated or controlled by us. <\/p>\n\n\n\n We are not responsible for the content, security, or practices of any third\u2011party sites. Clicking these links is at your own discretion and risk.<\/p>\n\n\n\n Any links to third party websites provided are for convenience only. We do not control, endorse, or guarantee the content, accuracy, or availability of these external sites. Users access these links at their own risk<\/p>\n\n\n\n <\/p>\n<\/div>\n\n\n