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Posted Thu, 01 Feb 2024 10:33:54 GMT by
I have recently moved back to the UK (June 2023) after 15 years in New Zealand. However I will be returning to NZ in September 2025 and under the 'place of permanent abode' rule, I will remain NZ tax resident even though I am living in the UK. I will also be UK tax resident as I have lived here for more than 183 days this tax year. While living in the UK I am contracting (self employed) to my NZ based company. All my earnings are in NZ, paid in $NZ to my NZ bank account. I have no income from UK sources - i.e. all my income from a UK perspective is foreign as I understand it. I'm finding it very difficult to understand/find clear information on the Double Tax Agreement and whether I should first pay tax on my income in NZ and then pay any residual tax in the UK or the other way around? I understand there are 'tiebreaker' scenarios that should answer this, but again I have not be able to find clear information for my specific situation. Can you please provide details of how I should proceed with my UK tax return at the end of this tax year? Will HMRC require any specific documents from NZ such as a certificate of residency?
Posted Fri, 02 Feb 2024 12:50:27 GMT by HMRC Admin 2

You can find guidance here:

RDRM12000 - Residence: The SRT: Split year treatment: Contents
RDR3 Statutory Residence Test

Thank you.
Posted Fri, 02 Feb 2024 13:30:01 GMT by
Thank you for that information but could you confirm if I have understood this correctly. From 1 April 2023 to 30 April 2023 I was living in New Zealand From 30 April 2023 to 2 July 2023 I was on annual leave/long service leave and was travelling around the world I have already paid NZ tax on the income I earned from 1 April 2023 to 3 July 2023. From 3 July 2023 till 31 Mar 2024 I will have been living and working in the UK, with all my income coming from NZ sources. As I've been in the UK for more than 183 days, I am UK tax resident and should then pay tax in the UK on all income from 3 July 2023 onwards regardless of my NZ tax status. Have I interpreted this correctly? Additionally, I am renting out my home in NZ while based in the UK. Does the income from rental properties get treated differently under the UK/NZ DTA from other income? Many thanks for your help.
Posted Tue, 06 Feb 2024 13:00:21 GMT by HMRC Admin 5
Hi mjm6x9

You will need to look at the tests and determine if split year treatment applies in your circumstances.  
If it does, you need to complete a self assessment tax return to declare split year treatment.  You can enter the foreign income from 1 April to 30 April in the free hands notes, so that it does not form any part of the tax claculation.  
If split year treatment does not apply, you need to complete a self assessment tax return declaring the foreign income from 1 April to 30 April and claim a tax credit for any foreign tax paid.  
Either way, a tax return is required.

Thank you

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