Leaving the UK

It is perhaps no surprise, given the recent instability in the UK political and tax environment, that we have seen a number of non-UK domiciliaries and UK domiciliaries considering leaving the UK. At least one tax change, the introduction of the statutory residence test, has proved helpful by offering a level of certainty about your UK tax residence status. For some, the only question is where to go to work, where to go to live and whether these places are the same! 

Many countries welcome new residents with preferred tax treatments. However, many jurisdictions are uncertain on how to tax private equity fund returns such as carried interest. It is important to note that some UK liabilities, such as those relating to ‘disguised remuneration’, ‘disguised investment management fees’ and inheritance tax, may continue to apply even if you leave the UK. 

Globally, we see legislative and regulatory changes increasing the cross border flow of individuals and investment – in part, through tax. People relocate for many different reasons such as climate, education, life style and business opportunities – and different locations appeal to different people. However, there is always one common theme irrespective of where individuals choose to relocate – tax.

Bi-annually, our private client tax specialists from BDO member firms worldwide undertake a review of the tax regimes across the globe, including some of the most popular locations where, in our experience, people choose to live. The study provides an overview of tax regimes in some 40 jurisdictions in an interactive PDF format. You can also view a 5 minute video for the highlights and use our interactive global map to get a snapshot of the different tax regimes.

As always, it is vital to take expert advice well before you leave the UK (or indeed come to the UK for the first time after a period abroad), ideally in the tax year before your intended move.

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