Leaving the UK and taking up residency in The Bahamas – Key UK Tax Points

Goldwyn penthouses, Bahamas, offer contemporary luxury featuring the next echelon of sophistication, design, and décor with wrap-around terraces, framed by panoramic ocean views, with private elevators, designer finished, 12-foot ceilings, and exclusive amenities including infinity beachfront pool, cold plunge pool, fitness centre, and sauna, as well as membership privileges at the exclusive Goldwyn Resort and Residences.

If you are considering buying an apartment in The Bahamas and spending more time there, it is worth planning early for your UK tax position. The Bahamas does not currently levy personal income tax, but UK residence rules and UK taxes can still apply, depending on your circumstances.

Please note – this is general information only. It is not legal, tax, or financial advice. Tax rules can change and outcomes depend on your personal circumstances. You should take advice from your professional advisers before acting.

Confirm your UK tax residence (and keep a day-count plan)

Your UK tax residence will depend mainly on the number of days you spend in the UK and the extent of your continuing UK ties, such as family, accommodation and work. If your aim is to become non-UK tax resident, it is important to agree a day-count plan and review those ties before you move.

It is also worth keeping in mind that immigration residence in The Bahamas and UK tax residence are separate matters. You may achieve one without the other.

Understand when non-residence starts (including split-year treatment)

Leaving the UK part-way through a tax year does not automatically mean you are treated as non-resident from the date of departure.

In some cases, HMRC may treat the tax year as split, so that you are UK resident up to the date you leave and non-resident thereafter. Whether split-year treatment applies will depend on your circumstances.

Consider planning steps before you leave

The timing of any move can be important. Depending on your circumstances, you may wish to review whether assets should be sold, dividends paid or other taxable events triggered before or after you become non-resident.

If you control companies, moving away from the UK can also raise corporate residence issues and, in some cases, create UK tax charges. If you hold UK real estate, whether directly or indirectly, UK tax can still apply to both income and gains even after you leave.

Expect some UK taxes to continue after you leave

Becoming non-UK resident does not necessarily end your exposure to UK tax. Common examples include UK rental income and gains realised on UK land or property.

UK inheritance tax may also remain relevant, depending on your wider circumstances and how long you have been outside the UK. As there is no UK–Bahamas double taxation agreement, although there is a tax information exchange agreement, planning in advance is especially important.

If you return to the UK

If you remain non-resident for fewer than five complete UK tax years, the temporary non-residence rules may apply. Broadly, this can result in certain income and gains realised during your period abroad becoming chargeable to UK tax on your return.

Consider how the apartment should be owned and review succession planning

Buying in your own name is often the simplest approach, but other ownership structures may be worth considering, depending on your wider objectives.

It is also sensible to review your wills, succession arrangements and powers of attorney, particularly if you will hold assets in more than one country.

At Beauchamp Estates, we recommend appointing experienced advisers to help you plan and implement any move from the UK and any change in tax residence. We have a strong working relationship with advisers who can help with these questions. If you would like introductions, please do not hesitate to let us know.

For more information on the Goldwynn Residences, please click here or speak to a member of our team.