Relax
regular
Reged: 18/04/2007
Posts: 161
Loc: ked out again!
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Agreed the rules have recently changed - I think I said this above. The rules re counting of depart and return dates tho don't make a huge difference however.
The dates or departure and arrival - meaning part tax years may be involved - are proprotioned out as part of that year. They are therefore only relevant if e.g. a large part of your 180 ('ish??) days in the UK were incurred in that part of the year. You need to read the whole thing to get the whole picture.
No insult was meant at all - apology conferred if insult was taken 
I guess that having been given bad and frankly biased financial advice in the past may have coloured my judgement somewhat in this respect.
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All men dream, but not equally.
Those who dream by night, in the dusty recesses of their minds,
wake in the day to find that it was vanity.
But the dreamers of the day are dangerous men,
for they may act their dreams with open eyes, to make it possible.
- T.E. Lawrence -
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LadyJessie
regular
Reged: 21/11/2006
Posts: 1150
Loc: the Med
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Agree with longjohnsilver that residence and domiciled are two different things and can easily be confusing. However, you should know that this is a particular issue in the UK only. I am not aware of any other EU country that has this: residency and domicile always follow. Not so in the UK.
To go out on a limb here again, let me try to make a simple explanation. Residency relates to the question of whether you will pay any taxes at all and domicile relates to the question if you will pay taxes on your world-wide income or only on the UK part. You can have many combinations of the two; resident but not domiciled is the typical state of foreign billionaires living in London. Non-resident but domiciled is probably the typical status of a UK liveaboard cruising outside of the UK, it means you will retain things like pension funds in the UK.
The only country that has something similar to this issue is the United States, but there it is more rigid: a US citizen is always considered domiciled in the US regardless of residency.
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wingdiver
regular
Reged: 12/05/2005
Posts: 436
Loc: Eastern UK
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And the Revenue say "tax doesn't have to be taxing"!
I saw a notice which read "Rocket Science is far easier to understand than Tax - at least the laws always stay the same!"
Does it for me.
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"I'm on a whisky diet, i've lost three days already"
"I went to buy some camouflage trousers the other day but I couldn't find any"
"I bought some HP sauce the other day. It's costing me 6p a month for the next 2 years"
Tommy Cooper
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Troutbridge
regular
Reged: 19/03/2007
Posts: 333
Loc: Cruising, mon, cruising
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I can say that after 5 years of being 'ordinarily non resident' you get non-dom status. But seriously, get professional advice.
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Some see the glass as half full, some see it as half empty. I see it as too damn small.
http:/blog.mailasail.com/troutbridge
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PhilipH
regular
Reged: 30/03/2005
Posts: 571
Loc: Northern Ireland
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I just want to thank you all - i will get a tax adviser!
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Conachair
regular
Reged: 24/01/2004
Posts: 543
Loc: Canaries
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QUite a good general artical here - http://www.fool.co.uk/personalfinance/taxes/1999/tax032299.htm
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Rogershaw
regular
Reged: 03/11/2001
Posts: 1391
Loc: Me: Johannesburg South Africa ...
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A very interesting comment in the URL you posted
Quote:
Readers may be interested to know that since then he has not been tax resident anywhere at all in the world.
It would be nice to know the details of this at this is what most liveaboards wish for
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Jeannius
regular
Reged: 30/01/2004
Posts: 278
Loc: Worcs U.K. and the B.V.I.
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That article is so old I wouldn't take too much notice of its contents. I know for sure there have been changes to the CGT rules in that time and possibly the definitions of ordinarily resident/resident/not resident
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Mike
www.sailbvi.net
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Conachair
regular
Reged: 24/01/2004
Posts: 543
Loc: Canaries
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This is from "Non-resident & offshore tax planning" by Lee Hadnum. (2006)
"Becoming a tax nomad.
Just as it is possible to be resident in more than one country, it is also possible to be resident in none. Such individuals are commonly known as 'tax nomads'. If you become a tax nomad you would still be liable for income tax on any income generated within a particular country, but capitol gains tax usually depends on the concept of residence."
I take this to mean sailing the seas you should still pay income tax on any income in the country it was earned. So no gain really, though some people might forget to pay. If you have 5 years spare then it might be a way out of capitol gains though. Complicated, innit!
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KellysEye
regular
Reged: 23/07/2006
Posts: 759
Loc: Bonaire
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Yes that's in line with professional advice given to us. I suspect there are only two ways to pay no tax. One is to 'disappear'. But that means no bank accounts, no residence, illegal/cash employment, no contact with anyone in the home country, no boat insurance, no credit cards, no health insurance, no boat boat papers, no driving licence, no PADI licence etc etc. But you could still be tracked if you use your passport.
So a new identity with a fake passport. At some point though you'll end up being taxed again.
I suspect this is why very, very few people with money (if any?) don't pay tax.
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