Switching tax residency

Tax and legal
1

At some point in the next couple of years I will need to return to being a UK tax resident from my current status as a Maltese tax resident.

My question relates to the different tax year periods.

If I return to the UK at the beginning of their tax year, April, can they tax me on worldwide income that I have earned as a Maltese resident in the Jan to Mar period of that year as I won’t have been in Malta long enough to satisfy their tax residency criteria, 183 days Jan to Dec?

I’m obviously trying to protect against being liable in 2 jurisdictions.

2

If I understand you correctly, you are currently a tax resident in Malta and will remain so until you relocate back to the UK.

If this is right, you should not be taxed for income earned before entering the UK as a tax resident having informed Malta that you are leaving.

The UK and Malta have a double tax treaty agreement and I have added a link below for you to check out.

1 Like
3

Many thanks for your reply Akan.

You understand my my situation correctly.

From what you stated, does that mean that I could theoretically leave Malta at any time of the year, having informed them that I am leaving, and then on returning to the UK I would not be liable for tax on any worldwide income earned during the current UK tax year as I had complied with the Maltese regulations? This would include income that was not taxable under Maltese rules.

4

Once you return to UK and inform HM government of your return, the date of your entry back will be used as a starting point/date to tax your worldwide earnings

5

Thanks Akan, that is really helpful as it gives me a lot more flexibility in planning my actual return.