November 2021 Newsletter | Cylchlythyr Misol Tachwedd 2021
If your car is on a PCP contract which is coming to an end, check the price at which you can purchase the car which was fixed at the start of your contract. With used car prices very high you may be able to make a profit by purchasing and reselling the car. Huw has recently sold a car via Cazoo and the process was very straightforward with proceeds transferred to his bank account on the same day.
A new 'cryptocurrency' was launched recently inspired by the Netflix series, Squid Game. Its price soared over a matter of days, however individuals who purchased these tokens lost all their money as it transpired to be a scam.
Ensure you complete rigorous research before you purchase any type of cryptocurrency. Even when it comes to legitimate cryptocurrency, it is very easy to buy but often very difficult to withdraw funds.
HMRC have confirmed that some individuals have experienced long delays with self-assessment repayments. If you are waiting for a tax refund, ensure this is followed up by your accountant.
There has been a heightened interest from individuals seeking to invest in 'ethical' or 'ESG' funds. If you have invested in multiple ethical funds, it is worth reviewing the underlying shares in each fund as you may realise that all of these funds are invested in the same companies. As with any investment strategy, diversification is key.
Ask Huw & Aled: I will be moving to the US for a period of 3 years with my work and I intend to rent out my current UK home until I return. Will I need to pay UK income tax on the rental income despite being resident in the US? If so, will I end up paying tax twice (in the US and in the UK)?
Under HMRC guidance, non-UK residents only pay UK tax on their UK income, therefore you will need to declare this rental income to HMRC once you have moved to the US. You will pay UK tax on the UK rental income.
As you will be resident in the US, it is likely that you will also need to declare your UK rental income to the US tax authorities.
Therefore, you will need to file both US and UK tax returns to declare the UK rental income. Although you will pay tax in the UK and the US, you will be able to claim back the amount of tax paid in the UK and deduct this from your US tax bill under double taxation rules.
In recent weeks, we have assisted individuals moving to Russia, Singapore, Australia, USA, Ireland and Hong Kong with their tax residency queries. Please contact us if you or your family members are seeking to move overseas, either on a temporary or permanent basis.
