To be classed as NON-RESIDENT in the UK and receive any dividends or income GROSS rather than net, you must spend less than 183 days in any one tax year in the UK. You should declare residency in your country of residence and pay tax there.

Alsacienne

I don't know if you can help with this one.

My husband and I are business partners and we are buying a property in Tenerife. I will be living there permanently with the children dealing with my side of the business while my husband will be staying in the UK for much of the time. Hopefully he will travel to Tenerife for a weekend every other week and perhaps a week every couple of months. He is the hands on worker in the partnership so needs to be in the UK as that is where our contracts are at the moment. We are hoping to gradually build up contracts in Tenerife so that he can also move there on a permanent basis withing the next 18 months or so. As I will be permanently in Tenerife and a resident could we pay the tax on 50% of our income there

I hope I haven't totally confused you, but any help or advise you could give would be appreciated.

Rgds Jackie

It will all depend on who is earning this income. Assuming that you are both drawing an income from the business in the form of salary then you can probably elect to pay tax on your salary as a Tenerife resident (though the rules always used to be that you had to spend less than 90 days per year in the UK to escape this, especially if you are being paid by a UK based business). But expect the Inland Revenue to pay particular attention to the business accounts in this instance and be prepared to deomonstrate that you are actually working for the business as opposed to just drawing an income from it. In the circumstances you really do need specialist advice and I assume that the accountant who oversees the business accounts would be your first port of call.

SM