thetaxclinictax issues when living abroadRoger Holman is a Chartered TaxAdviser specialising in income andcapital gains tax planning forindividuals. UK tax payers who, forwhatever reason, decide to leave theUK now come within HMRC's scrutinyas "tax avoiders". Here are somequestions Roger is often asked,together with their answers."I am leaving the UK to work, will I benon resident?"If you leave the UK for full-time employment andstay away for at least a whole tax year, you will benon-UK resident. The work must be full-timeand contracts must be in place before you leave." What if I do not have a full-time jobwhen I arrive?"You must sever social and economic ties to theUK. Memberships of sports clubs, social clubsand other business and personal links need tobe relinquished in the UK and new ones madewhere you decide to move to."So, I've been here abroad for a few yearsnow, and have shown that I'm non-resident. What if I invest in the UK again?"Should not affect your non-UK residence. If it isreal estate and you intend to let the property,you will need to register as a Non ResidentLandlord. One of the conditions for acceptanceis the agreement that you will complete annualtax returns."What if I sell my property?"As a non-resident, you are not liable for UKcapital gains tax. But if you return within five taxyears of leaving you will be liable to pay tax onworldwide capital gains you made while youwere away.Example:if you left in June 2005, you may face atax liability if you return before 6 April 2011. ForCGT, if you are UK resident even for just one dayin any tax year, you are UK resident for the wholeof that year.Owning property in the UK does have otherramifications from a tax point of view, inparticular for inheritance tax (IHT). If you dieowning assets in the UK, your estate may face aUK IHT bill of up to 40% of their value whereveryou live. If you are still domiciled in the UK IHTwill be payable on your world-wide situatedassets. I can give you a questionnaire to testwhere you are domiciled."I'm thinking aboutcoming home. Whatshould I do?"Get advice before youmove. That's what I amhere for!The moral of this story is?Although you have moved away from the UK,HM Revenue & Customs may still have a claimon your income and capital. If you are thinkingof returning home, there are ways and means ofreducing potential liabilities. As always with UKtax, it is best to seek advice and plan ahead.FIND OUT MORERoger HolmanAssociate (CTA)T:01892 506 135E:roger.holman@crippslaw.comIf you would like totalk to someone inour tax planning teamplease contact:iAlthough you havemoved away from the UK,HM Revenue & Customsmay still have a claim onyour income and capital.CRIPPSLIFE5

6CRIPPSLIFEStatistically, we will all be living longer and if youare a man, the good news is that the gapbetween survival rates for men and women isclosing. Cripps Harries Hallpartner, Anne Lewisheads up the team which has developedCrippsAssist, to support elderly clients and theirfamilies in a number of ways, including help withrelocation to more suitable accommodation,organising support at home, assisting withbudgeting, providing simple accounts andmaintaining a network of trusted serviceproviders. Providing a watching brief over elderlyrelatives when members of the family are notavailable, because of holiday or living at adistance is a service often appreciated.How CrippsAssist has helped one client:Mary is now in her late 80s; her closest relative is acousin who is herself quite elderly and, while sherecognises Mary needs assistance with managingher affairs, feels unable to provide this care andsupport herself.Cripps was contacted by the cousin about a yearago and asked to contact Mary who wanted torevise her long out of date will. At the meetingMary expressed concerns that her memory wasstarting to fail and felt increasingly unable tocope to manage her affairs so she decided toappoint Cripps to help her under a Lasting Powerof Attorney. Mary did not want to be a 'burden' onher family.Social Services had been involved but steppeddown once satisfied that Mary's affairs were inhand. It became apparent that Mary's home wasincreasingly unsuitable for her needs. She wasunable to manage her stairs and lived in onesmall room assisted by carers. Temporary respitecare was arranged over the Christmas period soMary had company and was safe during the worstof the snow. That was a success and Mary decidedto move permanently into residential care whereshe remains very happily. Mary's capacity has deteriorated significantlyrecently. As required by the Mental Capacity Act,we are careful to ensure that every decisionmade is in her 'best interest' followingconsultation with Mary herself and those closestto her, obtaining medical opinions, if necessary.Feedback from friends, family and Mary herselfindicates their appreciation of the support Maryhas received and that her affairs are now beingproperly managed.Many older clients live active and adventurouslives well into retirement. Others benefit fromdiffering degrees of assistance to help themmaintain an active lifestyle. CrippsAssist canguide elderly clients and their families throughthe maze of options available to help in makingthe right decision. A pioneer in one of thoseoptions, the new field of retirement villages, isCripps' client Audley Care. While care at home isoften the preferred option for elderly clients, itcan on occasions result in physical, emotional orfinancial abuse for the vulnerable elderly. Crippshas regrettably over the years had to deal with anumber of such cases. Anne Lewis hasestablished links with Laura Luckett of The GoodCare Group, who says; "it is very satisfying tomatch the right highly qualified carer with thevulnerable elderly client. It gives families peace ofmind to know that carers have suitable trainingand backup." Mary and her family have appreciated the support of CrippsAssist andin addition, as a trusted adviser with knowledge of the market and contacts both in the commercial and charitable sphere, it can help you and your family to make the right decision at a difficult time.CrippsAssistA watching brief"CrippsAssist canhelp you andyour familyto make the rightdecision at adifficulttime"FIND OUT MOREAnne LewisPartnerT:01892 506 356E:anne.lewis@crippslaw.comFor moreinformation aboutCrippsAssist pleasecontact :i