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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Residence: Leaving the United Kingdom: Liability for the year of departure

If the individual is not resident and not ordinarily resident from the day after the day of departure

Personal Allowances

  • full personal allowances are due [refer to RE1740]

Liability to UK tax

  • income chargeable to UK tax for the whole of the tax year of departure, including State benefits and untaxed interest is liable, unless you have exempted this income following a Double Taxation Agreement (DTA) claim. [PAYE81000 onwards and PAYE81750] [Refer to EIM42860 and EIM40003]

Overseas income

  • overseas income for the period to the day of departure is liable [refer to SAIM1130].

UK Dividends

  • Refer to the instructions in SAIM1170 if the individual has received UK dividends

Claims to relief/exemption

  • refer a claim to relief or exemption at source, under a Double Taxation Agreement, in respect of the following sources of UK income which arise after departure:
Pensions PT Operations PSA
   
Dividends Specialist Personal Tax, PTI Bootle
Royalties & Interest with PAYE or SA record PT Operations PSA
  with no PAYE income or SA record Specialist Personal Tax, PTI Bootle

Property income distributions paid by UK-REITs and PAIFs

  • refer claims to Specialist Personal Tax, Trusts & Estates Nottingham

Capital Gains

  • refer to the instructions CG2if there are disposals of assets after the day of departure

Example: Taking a simple example, say the individual is resident and ordinarily resident to 5 November 2009, and not resident and not ordinarily resident thereafter. (R/OR to 5 November 2009, NR/NOR thereafter)

Resident Period Not Resident Period
   
Liable  
UK sources* Liable

UK sources except

  • Government ‘FOTRA’ Securities
  • Income relieved under a
Double Taxation Agreement  
  Liable
Overseas sources Not Liable
Overseas sources
  • refer to EIM40003

Repayment

  • make any repayment due after following the above guidance, remembering to recover arrears of tax for earlier years, if any
  • where an individual leaves the UK after 5 April 1998 and the only source of UK income liable to UK tax is taxed investment income and/or property income received after deduction of tax:
  • deal with any cessation repayment claimed
  • send any repayment claim relating to a period after the date of departure from the UK to the appropriate office [Refer to PAYE81005].