Expats with little overseas employment income and those with holiday lets abroad will benefit from measures laid out in last week's Budget, according to accountancy giant Grant Thornton.
British expats no longer domiciled in the UK for tax purposes with overseas employment income of less than £10,000 a year and overseas interest of less than £100, will no longer be obliged to file a self-assessment return if the money is subject to a foreign tax.
This rule change will come into effect from 6 April 2008.
Grant Thornton says exemptions have been extended to allow property purchased out of foreign income and foreign charitable gains, plus relevant foreign income.
"These 'minor' amendments will in the main help to clarify the rules, but are an admission of the complexity created last year," Chris Mills, director at Grant Thornton, told The Telegraph.
"Many of these amendments have been backdated to April 2008 when the original legislation became effective. This shows what happens when legislation is conceived, drafted and introduced too quickly."
Alistair Darling also made a key change to the tax treatment of holiday lets abroad in his latest Budget which will benefit expats with qualifying properties.
Landlords with income from furnished holiday lets in the UK were previously able to treat income as if they were trading for tax purposes, providing they satisfied certain tests under the Furnished Holiday Lettings (FHL) rules. However, foreign properties were not treated in the same way.
The Government is in a quandary as to whether this complies with EU legislation. Consequently, up until 2010 when the FHL rules will be repealed for everyone, anyone with a qualifying furnished holiday property in the European Economic Area who pays UK income tax and CGT from the property will get tax treatments available to traders.
More information on the treatment of overseas property income is available at: http://home.inrev.gov.uk/pimmanual/PIM4703.htm
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