UK tax guide by BKL
On describing the British tax system
In a word “complicated”. The UK has the longest and one of the most complex tax legislations in the world. You have been warned!
As a default an individual is taxable on worldwide income and capital gains. If the individual owes UK tax or has certain types or levels of income it is up to that person to notify HM Revenue & Customs. HMRC will then send a tax return to complete. Penalties are levied for late or non-compliance. Reliefs and exemptions can be claimed to reduce tax liabilities and there are treaties with other countries to prevent double taxation.
Our main advice would be to start your tax planning before you arrive in the UK. There are many good statutory tax breaks available to foreign individuals moving temporarily to the UK however to get the most from these it is important to arrange your tax affairs efficiently in advance of becoming UK tax resident.
We would also emphasise that the most important part of your time in London is to enjoy yourselves. Therefore do not get involved with any artificial tax arrangements or create any unnecessary stress by destroying your lifestyle in the pursuit of tax savings.