CASE STUDY 2
'Venessa left the UK on 1 November 2019 to work permanently in France. She currently completes a tax return as she receives dividend income from her UK investments and also rents out a property. She has always been UK resident. She started work in Paris on 7 November 2019 and will work on average 40 hours per week. She will occasionally be required to attend business meetings in the UK. She is keeping the house she lived in vacant and will come back to the UK periodically to visit family and friends.’
Further information for Case Study 2:
She was joined in Paris on 1 December 2019 by her partner Liam. He normally lives with Venessa in the UK and has always previously been UK resident. He only has income from the rental property owned jointly with her.
Q. What is Liam’s residency status for 2019/20?
A. Liam was UK resident in 2018/19. He will be UK resident for 2019/20 under the automatic residence test as he spends 183 days or more in the UK.
Liam's main home is now in Paris, therefore, 2019/20 will be a split year for Liam under Case 2 provided;
Q. What pages will Liam need to include on his tax return for 2019/20?
A. Liam will have to include the following pages on his tax return:
Q. Will Liam have to complete a tax return for 2020/21?
A. Yes, Liam will have to submit a tax return for 2020/21 and every year he continues to receive rental income. He will have to include the following pages on his tax return: