Split year assessment for dual residents UK-Belgium

I am UK-Belgium dual resident with tax residency in Belgium as per tie breaker rules. I pay taxes on global income in Belgium. I am planning to sell my house in Belgium . However after I sell my house in Belgium my only home will be UK and I will become UK tax resident. I was trying to understand the split year (24-25) assessment criteria and find it very complicated. The table in the manual RDRM11520 & RDRM12150 -and the text is not clear to me. I would spend more than 120 days in UK in the tax year 24-25. If effective date of sale is say Dec 21st 2024, then will I be eligible for split year i.e Belgium tax resident till 21st Dec and UK tax resident from 22 Dec 24-5 Apr 2025. How many ties must I have with UK to disqualify for split year assessment. I do not understand reason for this table. I would become tax resident in both Belgium and UK for the Apr 6-Dec 21 ,2024 part of the year. I find it against the DTA to have to pay taxes on global income in both Belgium and UK for the Apr 24-Dec 24 part of the year . Is it advisable to time the move from Belgium so as to keep tax year clean for UK i.e move in on April 6th. It will come with a cost therefore your advice will be very helpful. thx very much.

Hi ,
 

If you qualify for split year then you only report any foreign income for the UK part of the year : RDRM12000 - Residence: The SRT: Split year treatment: Contents  . If you do not qualify then you will need to report all your foreign income to the UK : Tax on foreign income   .  The guidance at RDRM12150 - Residence: The SRT: Split year treatment: Case 4: Starting to have a home in the UK only   will help you work out if split year treatment applies.  We cannot comment on any form of calculation/example or scenario, whether fact or fiction. We can only point you the direction of the guidance, so that you can review the guidance and to allow you to make an informed decision.  Thank you .

Thank you. Assume that I do not qualify for split year assessment due to the guidance in the table. My only home in Belgium will be sold with some capital gains (20 years owned) though in real terms (inflation) there is loss. Will I get tax exemption from HMRC on the capital gains as it is the only home in Belgium which I owned for 20 years that was sold. In Belgium also your only home does not get taxed on capital gains. Your quick response will be highly appreciated.

Thank you sir for your reply on 6th Nov: RDRM 115XX documents I find it very confusing . Example to answer question on resident status when I am tax resident in Belgium but also resident in UK. Also the number of ties questions use only the word resident for spouse instead of allowing for a nuance on tax resident or resident. Would it be possible for me to not ask for split year treatment: Instead I declare the global income on the UK part of the year ( from the time I have only one home and it is in UK) to April 5th and declare only income from UK for the period when I was tax resident in Belgium and declare my global income including UK income. This way I am not avoiding any taxes, just keeping it simple. Appreciate your advice.

Hi,
For a more detailed answer to this question, you would need to contact our Self Assessment team below. 
Self Assessment: general enquiries
Thank you

Hi,
To work out if there is Capital Gains tax payable in the UK means you need to follow the UK rules.  
You need convert all the values to GBP sterling, using a just and reasonable exchange rate in use at the time of acquisition and disposal.
If the property was your main residence, then you can work out how much private residence relief to set against a gain.  
Please have a look at HS283 at: 
HS283 Private Residence Relief (2022) -self-assessment-helpsheet/hs283-private-residence-relief-2024).  
To help you, there is a calculator at: Tax when you sell property.  
As this is an overseas disposal, it must be declared on a Self Assessment tax return.
Thank you.

Thanks sir. I read through the HS283. It addresses UK residents & properties in the UK . I did not see any guidance for dual residents and foreign property. The double tax agreement between Belgium and UK states following : I am resident in Belgium as per tie-breaker rules till I have my home in Belgium. 1. Gains derived by a resident of a Contracting State (BE in my case) from the alienation of immovable property referred to in Article 6 of this Convention and situated in the other Contracting State (UK) may be taxed in that other State. This would apply if I sold any property in UK. 4. Gains from the alienation of any property other than that referred to in paragraphs (1) of this Article shall be taxable only in the Contracting State of which the alienator is a resident. Since as per DTA I am tax resident in Belgium so long as I am dual resident, I would not be liable to pay capital gains in UK. Is my interpretation incorrect Sir?

Hi,
We can only provide general information and guidance in this forum. For an answer to a detailed question of this nature, you would need to contact our Self Assessment team on or seek professional advice.
Self Assessment: general enquiries
Thank you.