Common sense of tax system necessary for immigration to Britain

Taxpayers of income tax are divided into two categories: residents and non-residents.

British residents in the sense of taxation generally refer to:

(1) People who have stayed in the UK for 6 months, that is, more than 183 days;

(2) No matter how long you stay in the UK, people who have a usable residence in the UK in their own name (except employees who have been engaged in business or full-time work abroad);

(3) Do not meet the above two conditions, but for four consecutive years:

A. People who stay in the UK for more than 9 1 day each year; or

B. People who stay for more than 9 1 day on average every year; or

C. People who have stayed in the UK for more than 1 year in 4 years.

British residents should usually pay income tax on their global income, regardless of whether they have remitted money to the UK. However, for income from sources outside the United Kingdom, the United Kingdom will give a credit for taxes paid outside the United Kingdom (limited to overseas direct taxes) according to the agreement to avoid double taxation or the unilateral provisions of British law. Some overseas income of British non-residents can enjoy preferential treatment, and only income from Britain is taxed.

tax year

The start and end date of the British income tax year is from April 6 of each year to April 5 of the following year.

Tax item

The taxation items of income tax mainly include the following items:

(1) Wages from employment and income from self-employment;

(2) Dividends at the end of each year;

(3) Pension income (including pension income obtained from the state, companies and individuals);

(4) Interest income from savings and bonds;

(5) Dividends (including stocks and wealth management investments);

(six) the rental income of housing rental;

(7) Trust income;

(8) Some income from state welfare.

Non-taxable items

Some incomes do not need to pay income tax at all. Common ones are:

(1) Some income from national welfare, such as guardian allowance, children allowance, housing allowance, income allowance, etc.

(2) Interest income from some savings, such as interest income from personal savings accounts;

(3) Rent for renting some houses: If the rented house is your only residence or family residence, the first rent received every year is 4,250 pounds exempt from income tax (if the house is owned by two people, the amount exempt from income tax is 265,438 pounds+0.25 pounds);

(4) Tax credits, including working tax credits and children's tax credits;

(5) Bonus bonds issued by the government (this part of income is not subject to income tax and capital gains tax).

It is worth mentioning that if an investor gets a sum of money from his spouse who is a non-British resident and is not subject to the adjustment of British tax laws and policies, the money will be regarded as a gift and exempted from income tax.

Further reading: immigration steps in Britain

1. Choose the immigration method according to your own situation and conditions.

2. After determining the immigration, prepare relevant application materials according to the application requirements.

3. Submit applications and materials

4. Waiting for review, summons and material supplement.

Be invited

6. Prepare immigrant visa materials

7. Submit visa application materials

8. Obtain an immigrant visa

9. Landing in Britain