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Posted Tue, 16 Nov 2021 23:01:01 GMT by Muhammad Rahman
I plan to return to UK in the middle of tax year 2022/23. I have been working full time abroad for 8 years now, and have been UK non-resident. I will become tax resident based on Statuary Resident Test guidance. I will not be able to avail split year treatment either since my family is living in the UK (strong UK ties). If I have worked first 6 months of the tax year abroad and later 6 months in UK. My UK salary will be taxed as PAYE. Since I used to complete self assessment before going abroad (because a small part of my income was not taxed). My questions are: 1: how will I be taxed in this particular tax year? 2: if I have received end of service benefits from my employer abroad, after my resignation, do I need to include this in my self assessment? Will this money definitely be taxed? This is crucial for me because this is a considerable amount which I will use to buy my first house in UK. If I end up paying tax on this I would rather wait and return to UK near the end of tax year (Feb/March), as this way I don't have to pay any tax on my foreign income. I can start anew from next tax year in UK. I need some advise specially on the issue of paying tax on the end of service lump sum money. By the way I am dual national, UK and non-UK and probably non-domicile too. Will this affect my tax situation? Many thanks and best regards, 
Posted Wed, 17 Nov 2021 15:12:00 GMT by HMRC Admin 17

Hi,
 
If you are UK tax resident for the year and you do not qualify for split year then you would need to declare all worldwide income the UK for the year
and claim for foreign tax credit relief for tax already paid abroad.

This will include all payments received when UK resident.

HMRC cannot offer financial advice or advice on future circumstances but the current rules indicate all worldwide income
needs to be declared in the UK if you are UK resident.

See link:

Tax on foreign income    .

Thank you.

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