Your UK resident status affects how your income and capital gains, both UK and foreign, are taxed. Residency can be a complex area of tax law and the following is a broad guide. If you're in any doubt, you should get professional tax advice.
In the UK, your tax residency status will depend on a statutory residence test.
You’ll usually be regarded as a UK resident if:
If you’ve just moved to the UK, you may not be a tax resident yet – our moving to the UK guide has more information on how you’ll pay income tax.
Yes – this is called dual residence.
In some situations, the 2 countries can have a double taxation agreement. This will decide:
Your domicile is broadly the country you consider your permanent home. If your permanent home is outside the UK and you intend to return there in the future, you will be non-UK domiciled.
If you have non-domiciled status, it may be beneficial to elect to pay UK tax on income earned outside the UK and capital gains realised on the sale of foreign assets only to the extent that the foreign income and gains are brought to the UK.
This is known as the remittance basis. It should be noted that the Chancellor of the Exchequer in his March 2024 Budget proposed to abolish the current non-domiciled tax regime and replace it with a residence-based system from April 2025. These proposals are subject to consultation at the moment.
If there's a double taxation agreement between the UK and the other country of residence, you can apply for a tax residency certificate (or certificate of residence) to claim tax relief in the other country. To do this, you’ll need to contact HM Revenue and Customs (HMRC).
You can use the Government Gateway platform to apply for your tax residency certificate or email a form to HMRC. You’ll need to tell them:
Under the Common Reporting Standard, financial institutions need to determine which country you’re a tax resident of.
If you’re leaving the UK, you’ll need to let HMRC know about your change in tax residency. To do this, you’ll need to complete a self-assessment tax return (if you’re in the self-assessment system). Otherwise you will need to fill out a P85 form.
We offer international services for both expats and those who are new to the UK.
If you’re new, we have guidance on living in the UK that covers everything from opening a UK bank account to sending money outside the UK.
For UK expats, we have dedicated support on our international services hub, including guidance on setting up your finances outside the UK.
