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bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4096
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I moved to the UK from the US in September 2014. I filed US

Customer Question

Hi. I moved to the UK from the US in September 2014. I filed US tax (including my income and expenses in the UK between September to December 2014) for 2014 already, and am preparing to file UK tax now. Am I going to have to pay tax for my US income during
the UK tax year, even though I pay tax for it in the US? How do I avoid the double taxation? Do they know it automatically?
Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The 14/15 tax year, the year of arrival, will be split into two portions for UK tax purposes, one non resident and one resident and you will be wholly resident for 14/15. If you spend more than 183 days in the UK in any one tax year you are liable for UK Income Tax on your world wide income.

There is no problem; a Double Taxation Treaty exists between the UK and the USA (and indeed with a number of individual States within the Union also) which precludes the same income stream from being taxed in both jurisdictions. This is achieved by means of tax credits, the tax paid to one country being allowed as a tax credit against the liability in the other. The Treaty does not protect you from differences in rates of tax, however.

When you make your UK self assessment tax return it will all come out in the wash so to speak and you will not be double taxed.

I do hope that I have set your mind at rest on this matter.

Customer: replied 1 year ago.
Thank you very much for your answer, Keith. Did you mean that I will be wholly resident for 15/16?
Do I need to divide the 14/15 into two portions and file non resident tax separately from resident tax, or will i be able to submit in the same file? For the 14/15, I spent more than 183 days in the UK.
Expert:  bigduckontax replied 1 year ago.

It would appear from the tenor of your question that that is the case. You will be resident for 14/15, but only on the split year principle. You would declare income to the UK authorities for September 2014 [date or arrival] to 5 April 2015. This split year rule used to be an extra statutory concession, but is now enshrined in UK tax law. I would be inclined to remind HMRC when you do your 14/15 tax return of your date of arrival in the additional information box towards the end of the form.