Double taxation: Don't get caught out
Sorting out taxes is high on the agenda for international movers ahead of relocation.
One of the things that has to be addressed early on is one’s tax status. For example, if you are receiving an income from one country but still officially a resident in another, you may have to pay taxes in both countries.
In the industry this is known as “double taxation”. In light of this, the UK government has negotiated double taxation treaties with more than 100 countries to ensure that people are not unfairly over-taxed.
Expats living and working in a country that has arranged a treaty with the UK can, depending on the particulars of that agreement, claim either full exemption or partial relief from tax “on certain types of income from UK sources”.
This can include interest, royalties, pensions and purchased annuities.
Depending on your own experience or professional position, it may be advisable to get advice from an accountant or specialist tax advisor.