RDRM10245 - Residence: Coming to the United Kingdom: The liability for the year of arrival

If, from the day of arrival, the individual is

  • resident and ordinarily resident [refer to PAYE81580]

or

  • resident but not ordinarily resident

the following will apply

Personal Allowances

  • full personal allowances are due

Liability to UK Tax

  • income chargeable to UK tax for the whole of the tax year of arrival, including untaxed interest, unless you have an exemption authority from PT Operations PSA Cardiff which covers the period up to the date of arrival (refer to Cardiff if you have any questions about an exemption authority) [refer to EIM42860 and EIM40003]

Overseas income

  • overseas income is chargeable, on the arising or remittance basis as appropriate, for the period from the day of arrival to 5 April next [refer to SAIM1130]

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Capital Gains

  • refer to the instructions at CG25720 onwards if the individual has disposed of any assets before the day of arrival.

Example

Take a simple example: say the individual is

  • either not resident and not ordinarily resident to 5 November 2008, resident and ordinarily resident thereafter (NR/NOR to 5 November 2008, R/OR thereafter),
  • or not resident and not ordinarily resident to 5 November 2008, resident but not ordinarily resident thereafter (NR/NOR to 5 November 2008, R but NOR thereafter):

Resident period

Liable on UK sources unless individual is NOR, liable on overseas sources.

Not-resident period

Liable on UK sources except

  • Government ‘FOTRA’ securities
  • income relieved under a DTA

Not liable on overseas sources.