Duration of time allowed to be outside of the UK

[JaneinBali]

Hi, I was recently told that a UK citizen/resident can only 'legally' live outside of the UK for 183 days per year and then has to return and live there for 163 days consecutively!! I've struggled to find any government website that gives a full explanation as most refer to Brexit changes which obviously don't apply in Indonesia. Having only been in Bali for four months, I have no desire to return to the UK in two months or to have to spend any length of time there . Does anyone have any experience/knowledge or information on whether this is true or not? Many thanks, Jane

 

[Dori]

What visa do you have for Bali Jane?

 

[JaneinBali]

B211A vias so 180 days

 

[Markit]

You can stay outside of the UK for as long as your heart desires (I've managed 15 years) but the only question could be with your domicile. I believe (but don't know) you can stay outside of the UK for 183 day in any tax year and upon return you are considered to be non-UK domiciled for UK tax purposes OF THAT TAX YEAR i.e. you don't need to pay tax there.

 

[britoo]

Hi, I was recently told that a UK citizen/resident can only 'legally' live outside of the UK for 183 days per year and then has to return and live there for 163 days consecutively!! I've struggled to find any government website that gives a full explanation as most refer to Brexit changes which obviously don't apply in Indonesia. Having only been in Bali for four months, I have no desire to return to the UK in two months or to have to spend any length of time there . Does anyone have any experience/knowledge or information on whether this is true or not? Many thanks, Jane

Here is what I think you are looking for
https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

There are 4 things going on of which probably only two matter. These are:
1 UK citizenship
2 Domicile
3 UK (legal residency)
4 UK tax according to 3

As Markit says you can spend as long as you like (continuous or otherwise) overseas.

Your citizenship will never be impacted and your domicile is pretty sticky and is unlikely to be impacted unless your permanently settle overseas or chose to move it. I think it would be hard to argue your domicile has changed as the B211 (although it can be renewed) doesn't really confer the right to settle in Indo.

This leaves your residency (legal and tax) which will may be impacted year on year according to the rules set out above with various pros and cons.

Unfortunately it isn't as simple as the 183 days rule as there are some statutory tests that apply in both directions and then its down to ties if this is inconclusive.

The pro of not being (tax) resident is that your income and capital gains are exempt from UK tax whereas remaining resident means your worldwide income is subject to tax and you should in theory fill out an SA tax return.

The cons of not being tax resident is that in theory you are not eligible to use many UK government services ranging from the trivial: not being able to renew or replace your driving licence to not having access to the NHS. In theory many domestic financial services providers, insurance / banks cannot provide you services and in theory your insurances could be void and your bank accounts could theoretically be closed. You'd certainly want to confirm your travel / medical insurance isn't voided. You would also in an extreme circumstance say you sold your UK home whilst being non-resident be subject to CGT on the sale as your are ineligible for the nil-tax band if non-resident.

Hope this helps

 

[JaneinBali]

You can stay outside of the UK for as long as your heart desires (I've managed 15 years) but the only question could be with your domicile. I believe (but don't know) you can stay outside of the UK for 183 day in any tax year and upon return you are considered to be non-UK domiciled for UK tax purposes OF THAT TAX YEAR i.e. you don't need to pay tax there.

Hi Marit, Thank you so much for your reply which was so helpful. My hearts desire is to stay out of the UK for as long as possible. . I appreciate you taking the time. Jane

 

[JaneinBali]

Here is what I think you are looking for
https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

There are 4 things going on of which probably only two matter. These are:
1 UK citizenship
2 Domicile
3 UK (legal residency)
4 UK tax according to 3

As Markit says you can spend as long as you like (continuous or otherwise) overseas.

Your citizenship will never be impacted and your domicile is pretty sticky and is unlikely to be impacted unless your permanently settle overseas or chose to move it. I think it would be hard to argue your domicile has changed as the B211 (although it can be renewed) doesn't really confer the right to settle in Indo.

This leaves your residency (legal and tax) which will may be impacted year on year according to the rules set out above with various pros and cons.

Unfortunately it isn't as simple as the 183 days rule as there are some statutory tests that apply in both directions and then its down to ties if this is inconclusive.

The pro of not being (tax) resident is that your income and capital gains are exempt from UK tax whereas remaining resident means your worldwide income is subject to tax and you should in theory fill out an SA tax return.

The cons of not being tax resident is that in theory you are not eligible to use many UK government services ranging from the trivial: not being able to renew or replace your driving licence to not having access to the NHS. In theory many domestic financial services providers, insurance / banks cannot provide you services and in theory your insurances could be void and your bank accounts could theoretically be closed. You'd certainly want to confirm your travel / medical insurance isn't voided. You would also in an extreme circumstance say you sold your UK home whilst being non-resident be subject to CGT on the sale as your are ineligible for the nil-tax band if non-resident.

Hope this helps

Hi Britoo, you have found the link/information that I have been searching for so it is much appreciated. I am self-employed so I always do a SA tax return but I can now share the information from the link with my accountant.

Thank you for flagging about medical/insurance as I need to check on that status and make sure it is valid. I really appreciate yours and Marik's time and I am so grateful I found Balipod. If we ever bump into each other, I owe you at least a coconut water etc for your invaluable advice! With best wishes Jane