Threadneedles KC

Hello, Thank you for your prompt reply. I had a couple of clarifying questions: 1. The form "Double Taxation: Treaty Relief (Form DT-Individual)" that you suggested completing states it is applicable for "relief from UK Income Tax on pensions, purchased annuities, interest or royalties arising in the UK". Should this form also be used for relief from UK Income Tax on employment income? 2. As a practical matter, if the amount of tax owed in Portugal is less than the amount already paid in the UK, will HMRC (assuming it accepts the application): (i) refund the full amount of UK income tax already paid?; or (ii) refund only the difference between what was paid in the UK and what is owed in Portugal?. Thank you again for your help. With many thanks, Threadneedles, KC.

Hello, I have a similar question to the original message in this thread. I am a British (and Portuguese) citizen who moved to Portugal in March 2023. From the time of my move to Portugal in March 2023 to May 2024, I continued to earn an employment income from a UK-based employer who has no physical presence or permanent establishment in Portugal. My employment income was paid into an offshore bank account. During the relevant period, the vast majority of my time was spent on gardening leave and based on the advice of my UK accountant, I should consider myself non-UK tax resident pursuant to the various UK tax residency tests (e.g., more than 183 days spent outside of the UK, only 12 days spent in the UK, no "ties" to the UK, etc.). Throughout this period, I have continued to pay UK income taxes and NI contributions on my UK employment income. Given that the majority of this time, I was on gardening leave or holiday, there was no exercise of employment in the UK territory, and throughout this period I was in Portugal where my family resides and we have our family home. On my UK 2022-23 tax submission, I submitted notice to HMRC that I had moved outside the UK effective March 2023. The advice of my Portuguese tax accountant is that I should be paying employment income taxes in Portugal (and not the UK). My UK accountant has not been able to appropriately advise and has suggested engaging tax counsel to opine (which seems very expensive for what should arguably be a straight forward assessment). Based on these circumstances: 1. Under the terms of Art. 15 of the Portugal-UK DTA, where should I be paying my employment income taxes? The wording in Para 2 of Art. 15 of the Portugal-UK DTA is not entirely clear. 2. If the answer is "Portugal", should I seek a refund from HMRC in relation to employment income taxes paid in the UK? If so, which form would you recommend using? I would be grateful for your advice. With kind regards, Threadneedles, KC.