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Topic: Should I wait until the new year to get a UK passport  (Read 1249 times)

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Should I wait until the new year to get a UK passport
« on: December 04, 2016, 02:12:33 PM »
Hello,

I am a Dual Citizen from birth, though I have only ever lived in the United States. I have a US passport, and I will be submitting an application for a UK passport soon as I will be working in the UK in 2017. If I submit an application for a passport in 2016 will I have to file taxes in both countries even though I did not work in the UK in 2016?

Thank you,
« Last Edit: December 04, 2016, 02:20:48 PM by FUNGI5 »


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Re: Should I wait until the new year to get a UK passport
« Reply #1 on: December 04, 2016, 02:20:11 PM »
I earn more than 82,400 USD and it was all earned within the US.


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Re: Should I wait until the new year to get a UK passport
« Reply #2 on: December 04, 2016, 03:41:03 PM »
I found the Answer in this Document newcomer link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/547118/160803_RDR3_August2016_v2_0final_078500.pdf [nonactive]

None of the Automatic residency or non-residency Tests apply to me as I will be spending Between 46-179 days here and I don't own a home here ETC.. So i have to take the Sufficient Ties Test: which I pass as non resident under certian conditions I will have to keep in mind while booking my hotels here.

My passport has no bearing on the situation, As long as I don't claim I have an address in the UK


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Re: Should I wait until the new year to get a UK passport
« Reply #3 on: December 04, 2016, 03:43:42 PM »
As you found, you pay taxes in the country you are RESIDENT of.  So even if you have a UK passport, if you are not a resident, you don't pay tax in the UK.

US is slightly different in that you will have filing requirements even after you relocate to the UK, but you won't owe tax on your salary.


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Re: Should I wait until the new year to get a UK passport
« Reply #4 on: December 05, 2016, 12:50:41 PM »
As you found, you pay taxes in the country you are RESIDENT of.  So even if you have a UK passport, if you are not a resident, you don't pay tax in the UK.

US is slightly different in that you will have filing requirements even after you relocate to the UK, but you won't owe tax on your salary.
Not to split hairs, but you will owe US tax, however, you will presumably have a foreign tax credit from UK taxes that forgives what would be owed in the US.

Just to clarify, cause I will have ongoing US based income from equity holding in a business, plus a UK based salary. So, it is likely in my case that at least in some years I will still owe some US tax in addition to the UK tax on my salary.


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Re: Should I wait until the new year to get a UK passport
« Reply #5 on: December 05, 2016, 10:44:12 PM »
Not to split hairs, but you will owe US tax, however, you will presumably have a foreign tax credit from UK taxes that forgives what would be owed in the US.

Just to clarify, cause I will have ongoing US based income from equity holding in a business, plus a UK based salary. So, it is likely in my case that at least in some years I will still owe some US tax in addition to the UK tax on my salary.
But if you are a UK resident the UK will have the primary taxing right over all income, so depending on circumstances there may be zero US tax payable after credits for UK tax.


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