Can I Use Split Year To Reduce My Tax Liability On Return To The UK?
Trevor Wilkes, Principal of Trewtax Services responded as follows:
As you may be aware, liability to UK tax whilst you are employed overseas is driven by your residence status and the Statutory Residence Test. As a result, you will either be non-resident or resident for a particular tax year. For the years of departure or arrival you will be resident unless you are able to meet the strict criteria which enables you to split a tax year into non-resident and resident parts. This will therefore have a direct bearing on liability in respect of income tax and I appreciate your concern is in respect of your husband’s employment income package.
This is a particularly complex aspect and not something which can be determined from the details provided. Consequently, your husband’s tax position should be reviewed in depth and as quickly as possible bearing in mind his imminent return to the UK within the coming 2 weeks.