Moving to the UK: what happens to my tax?
Moving to the UK can change your tax position significantly.
You may start working for a UK employer, run a business, become a director, keep income or assets overseas, rent out property abroad, or continue receiving income from another country.
One of the first questions to consider is:
When do I become UK tax resident?
Your UK tax residence position affects what income you need to report, whether foreign income is taxable in the UK, and whether you need to complete a UK Self Assessment tax return.
This guide explains the main points to consider when moving to the UK.
The UK tax year
The UK tax year runs from 6 April to 5 April.
This is important because UK tax residence is considered separately for each tax year.
For example, you may be non-resident in one tax year, UK resident in the next, and potentially treated as resident for only part of the year under split year treatment.
The tax year in which you arrive in the UK is often the most important one to review.
Tax residence is the starting point
Your UK tax position usually starts with tax residence.
If you are UK tax resident, you are generally taxable in the UK on your worldwide income and gains, unless a specific relief or regime applies.
If you are not UK tax resident, you are generally taxed in the UK only on certain UK source income.
HMRC’s guidance confirms that if you are UK resident, you will normally pay UK tax on foreign income, subject to any available reliefs or special rules. You can check the current guidance on the GOV.UK tax on foreign income page.
The Statutory Residence Test
The UK uses the Statutory Residence Test, often called the SRT, to determine whether an individual is UK tax resident.
The test looks at factors such as:
- How many days you spend in the UK
- Whether you have a home in the UK
- Whether you work in the UK
- Whether you have family in the UK
- Whether you have accommodation available in the UK
- Whether you have been UK resident in previous years
- Whether you work full time overseas
- Your pattern of UK visits
HMRC explains that the SRT is applied separately for each tax year. You can read the current guidance on the GOV.UK Statutory Residence Test page.
The SRT can be straightforward in some cases, but it can also become detailed where you move part way through a tax year, continue working overseas, or split your time between countries.
Arriving part way through the UK tax year
If you arrive in the UK part way through a tax year, you are not automatically taxed as UK resident only from the date you arrive.
The UK tax year is considered as a whole.
However, in some cases, split year treatment may apply. If it applies, the tax year is divided into:
- An overseas part, when you are treated as non-UK resident
- A UK part, when you are treated as UK resident
Split year treatment can be valuable, but it is not automatic. The conditions need to be checked carefully.
Worldwide income and gains
Once you are UK tax resident, you may need to report foreign income and gains to HMRC.
This can include:
- Overseas employment income
- Foreign self-employment income
- Foreign rental income
- Foreign bank interest
- Foreign dividends
- Overseas pension income
- Income from foreign companies or partnerships
- Gains on overseas property or investments
- Income from offshore funds
- Foreign trust income
The fact that money remains outside the UK does not automatically mean it can be ignored.
From 6 April 2025, the previous non-domiciled remittance basis regime was replaced by the Foreign Income and Gains regime for eligible individuals. HMRC’s guidance explains that UK residents are normally taxed on foreign income, but may not have to pay UK tax on certain foreign income if they qualify for Foreign Income and Gains relief. You can check HMRC’s current guidance on the GOV.UK foreign income and gains page.
The Foreign Income and Gains regime
The Foreign Income and Gains regime, often called FIG, applies from 6 April 2025.
It can provide relief for eligible individuals who are new or recent arrivals to the UK.
Broadly, eligible individuals may be able to claim relief for certain foreign income and gains during the first four years of UK tax residence, provided the conditions are met.
HMRC explains that the four-year Foreign Income and Gains regime replaced the previous remittance basis from 6 April 2025. You can check the current guidance on the GOV.UK Foreign Income and Gains regime page.
This is a specialist area. You should not assume that the regime applies without checking your residence history and eligibility.
Foreign income already taxed overseas
If your foreign income has already been taxed overseas, you may still need to report it in the UK if you are UK tax resident.
However, you may be able to claim relief for foreign tax already paid.
This is often done through Foreign Tax Credit Relief.
The calculation depends on:
- The type of income
- The country where the income arose
- The amount of foreign tax paid
- The UK tax due
- Any applicable double tax treaty
- Whether a specific relief or regime applies
Foreign tax paid does not automatically remove the need to include the income on a UK tax return.
Double tax treaties
The UK has double tax treaties with many countries.
These treaties help decide which country has taxing rights over particular income or gains and how double taxation should be relieved.
Different treaty rules may apply to:
- Employment income
- Rental income
- Dividends
- Interest
- Pensions
- Capital gains
- Business profits
- Director fees
Where income is taxed in more than one country, the treaty position should be checked.
Employment after moving to the UK
If you start working for a UK employer, your tax will usually be handled through PAYE.
PAYE is the system used by employers to deduct Income Tax and National Insurance from salary before paying you.
When you start work in the UK, your employer will usually ask for information to set up payroll correctly.
If you have moved from overseas, your tax code may need to be reviewed once HMRC has the correct information.
National Insurance number
If you work in the UK, you will usually need a National Insurance number.
You can apply for a National Insurance number if you live in the UK, have the right to work in the UK, and are working, looking for work, or have an offer to start work. GOV.UK also confirms that you can start work before receiving your National Insurance number if you can prove your right to work in the UK. You can check the current guidance on the GOV.UK National Insurance number page.
National Insurance is separate from Income Tax, but both are important for UK employment and social security records.
Self-employment after moving to the UK
If you start working for yourself in the UK, you may need to register as self-employed and complete a Self Assessment tax return.
This can apply if you:
- Work as a sole trader
- Freelance
- Consult
- Run a small business
- Have untaxed income
- Receive foreign self-employment income while UK resident
You must normally tell HMRC by 5 October following the end of the tax year if you need to complete a tax return and have not sent one before, or need to reactivate Self Assessment. You can check the current guidance on the GOV.UK Self Assessment registration page.
Becoming a UK company director
If you move to the UK and become a director of a UK company, you may have UK tax and filing obligations.
You may need to consider:
- Salary through PAYE
- Dividends
- Director’s loan accounts
- Benefits in kind
- Self Assessment
- National Insurance
- Pension contributions
- Company tax filings
- Companies House responsibilities
Director income can be more complex than normal employment income, especially where you receive dividends or have overseas income as well.
Keeping overseas property
If you keep property overseas after moving to the UK, any rental income may need to be reported in the UK once you are UK tax resident.
You may also need to report foreign tax paid and consider Foreign Tax Credit Relief.
If you later sell the overseas property while UK resident, the gain may need to be considered for UK Capital Gains Tax purposes.
The local tax treatment in the country where the property is located may also continue to apply.
Overseas bank accounts and investments
If you move to the UK and keep overseas savings or investments, the income may need to be reported in the UK.
This can include:
- Foreign bank interest
- Foreign dividends
- Income from overseas funds
- Foreign investment platform income
- Offshore bond income
- Gains on overseas shares or funds
You should keep clear records of income received, tax withheld, transaction dates and exchange rates.
UK tax returns are completed in pounds sterling, so foreign amounts usually need to be converted into GBP.
Pensions from overseas
If you receive a pension from another country after moving to the UK, it may need to be reported in the UK.
The treatment can depend on:
- The type of pension
- The country paying it
- Whether tax is withheld overseas
- The relevant double tax treaty
- Whether the pension relates to government service
- Whether any specific exemption applies
Overseas pensions should be reviewed carefully because treaty treatment can vary.
Selling assets after moving to the UK
If you become UK tax resident, gains on overseas assets may fall within UK Capital Gains Tax.
This can include gains on:
- Overseas property
- Foreign shares
- Cryptoassets
- Business assets
- Investment funds
The UK tax position may depend on when the asset was acquired, when you became UK resident, whether any relief applies, and whether foreign tax is also due.
If you are planning to sell significant assets, it is worth taking advice before the sale where possible.
Inheritance Tax and long-term residence
Moving to the UK may also have Inheritance Tax implications, especially if you remain in the UK long term.
The UK has introduced a residence-based approach for Inheritance Tax from 6 April 2025.
The rules can be important for people with overseas assets, trusts, family wealth or plans to remain in the UK for several years.
This is a specialist area and should be reviewed separately where relevant.
Student loans and overseas obligations
If you have overseas student loans or tax obligations in another country, moving to the UK does not automatically end those responsibilities.
Equally, if you have a UK student loan and return to the UK, repayment arrangements may change through UK payroll or Self Assessment.
This is not always the first thing people think about when moving country, but it can matter.
Do you need to file a UK tax return?
You may need to file a UK Self Assessment tax return after moving to the UK if you have:
- Self-employment income
- Rental income
- Foreign income
- Capital gains
- Dividends above the relevant reporting level
- High income Child Benefit Charge issues
- Partnership income
- Director income requiring reporting
- Tax to pay that is not collected through PAYE
- A notice to file from HMRC
If HMRC sends a notice to file, do not ignore it. Even if you think no tax is due, you may need to file the return or ask HMRC to withdraw the notice.
Records to keep when moving to the UK
Good records are very important in the year you move.
You should keep:
- Date of arrival in the UK
- Travel records
- Days spent in the UK
- Days worked in the UK
- Days worked overseas
- Employment contracts
- Rental agreements
- Overseas income statements
- Foreign tax documents
- Bank interest statements
- Dividend statements
- Pension statements
- Property income records
- Asset sale documents
- Exchange rate calculations
- Overseas tax returns
- Evidence relevant to the Statutory Residence Test
- Evidence relevant to Foreign Income and Gains regime eligibility
These records can be difficult to reconstruct later.
Common mistakes
Common mistakes include:
- Assuming UK tax only starts from the day you arrive
- Ignoring the Statutory Residence Test
- Assuming split year treatment applies automatically
- Forgetting foreign income
- Assuming foreign tax paid means no UK reporting is needed
- Not checking Foreign Income and Gains regime eligibility
- Failing to register for Self Assessment on time
- Not applying for a National Insurance number when needed
- Forgetting overseas rental income
- Selling overseas assets without checking UK Capital Gains Tax
- Not keeping records of travel dates and foreign income
- Ignoring double tax treaty issues
These issues are usually easier to manage when reviewed early.
Practical checklist
If you are moving to the UK, consider:
- When will I become UK tax resident?
- Could split year treatment apply?
- Do I have foreign income or gains?
- Could the Foreign Income and Gains regime apply?
- Do I need to register for Self Assessment?
- Do I need a National Insurance number?
- Will I be employed, self-employed or a company director?
- Will I keep overseas property or investments?
- Will I pay tax in another country as well?
- Do I need to claim Foreign Tax Credit Relief?
- Are there double tax treaty points to consider?
- Should I take advice before selling overseas assets?
- What records should I keep from the date I arrive?
How CooperFaure can help
CooperFaure can help individuals, landlords, directors and business owners understand their UK tax position when moving to the UK.
We can support with:
- Reviewing UK tax residence
- Considering split year treatment
- Preparing Self Assessment tax returns
- Reporting foreign income
- Considering Foreign Tax Credit Relief
- Reviewing overseas property income
- Considering director and company tax issues
- Helping with Self Assessment registration
- Identifying when specialist cross-border advice may be needed
If you are moving to the UK, or have recently arrived and are unsure what to report, it is best to review your tax position early.