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If you are the citizen of, or domiciled in,
another country - but choose to make your home
in the UK - there is a particular feature of the
UK tax system that works to your advantage.
You may only be taxed on your earnings in the
UK. Earnings from investments, businesses,
employment outside of the UK can be exempt from
UK tax - (unless you remit the proceeds to the
UK).
There is a further advantage. If you are in the
UK for less than 183 days in a tax year (April
6th to April 5th) then you can reclaim tax paid
while you were in the UK. This is of particular
benefit to Commonwealth citizens, Canadians,
Australians, New Zealanders and South Africans
who visit the UK on a working holiday.
However - be warned - reclaiming tax due to you
is a lengthy process and frequently takes 9 to
12 months.
Overall - as you probably won't pay tax in your
home country while you are in the UK, this
offers tremendous tax saving benefits to
virtually all non-UK citizens who choose to work
in the UK.
However citizens of the USA do not benefit quite
as much because the US Government (almost
uniquely, only Libya!! operates a similar
system) chooses to tax its citizens on their
world-wide income - which closes this particular
tax saving tip for them. The good news however
for US Citizens is that tax paid in the UK can
usually be used as a credit against tax due in
the USA.
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