• It is important to take great care over visits. If you have never lived in the UK, you can visit the UK for up to 182 days in one tax year but not more than 90 days on average (over any four-year period) without breaching the test for tax residence in the UK. However, recent tax cases have established that if you leave the UK to retire overseas, these visiting rules may not apply if you have failed to establish that you left the UK permanently before later visits began.
  • The rules are due to change from 6 April 2013, when a legislative test for UK tax residence is to be introduced. You should take specific advice on making visits back to the UK.
  • As regular visits may indicate that you have not “severed all links with the UK” it may also be difficult to establish that you have relinquished your UK domicile status. This will particularly be the case for inheritance tax (IHT) where a ‘deemed domicile’ rule applies. Under this rule, even if you are domiciled outside the UK for other tax purposes, your UK domicile will be retained for IHT purposes for three calendar years after your departure.