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Topic: 2 year housing deduction question  (Read 1131 times)

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2 year housing deduction question
« on: April 11, 2006, 12:42:31 AM »
I read somewhere that you can deduct (or get credit for) your housing expenses, namely rent, for up to two years when you work in the UK.  Maybe some other expenses too.

I am currently in the US (US citizen) and considering a position in the UK with another company so I am trying to work out what my taxes would be.  It could turn out to be a longer assignment, but it is probably going to be about 2 years so this deduction would make a difference.

Any thoughts, answers, etc., on what you have to do to qualify for this deduction are appreciated.



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Re: 2 year housing deduction question
« Reply #1 on: April 11, 2006, 10:04:55 AM »
There is something available along these lines, but you need to be classified as Resident but Not Ordinarily Resident in the UK.  There are lots of restrictions and stipulations.  Your new employer should be making these arrangements on your behalf, rather than you, as it will reduce the amount they need to compensate you for your overseas differential.  You'll make more money then you did in the US, they'll pay less money, everybody wins.
Liz Z i t z o w, EA
British American Tax


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Re: 2 year housing deduction question
« Reply #2 on: April 11, 2006, 10:49:20 AM »
Lizzit is not quite correct.  The deduction you are considering is not at all related to Resident but Not Ordinarily Resident status.

A UK adviser would be familiar with what deductions are available, and I agree that you should have your employer check these out along with your work permit.


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Re: 2 year housing deduction question
« Reply #3 on: April 13, 2006, 05:56:11 AM »
Ok.  Thanks.  I was just curious what kind of circumstances you need to qualify for that deduction.  Talking to an accountant is a good idea.


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