UK tax residency: what happens if I move abroad?
Moving abroad can be exciting, but it can also make your UK tax position more complicated.
You may leave the UK, start working overseas, rent out your UK home, keep UK investments, continue as a company director, or split your time between countries.
In these situations, one of the most important questions is:
Am I still UK tax resident?
Your UK tax residence status affects how you are taxed, what income you need to report, and whether you still need to file a UK Self Assessment tax return.
This guide explains the main points to consider when moving abroad.
Leaving the UK does not automatically end your UK tax obligations
A common misconception is that moving abroad immediately ends your UK tax responsibilities.
That is not always the case.
You may still have UK tax obligations if you:
- Remain UK tax resident
- Receive UK rental income
- Continue to work for a UK employer
- Remain a director of a UK company
- Receive UK pension income
- Sell UK property
- Have UK investment income
- Spend significant time back in the UK
- Need to file a Self Assessment tax return
- Have student loan repayment obligations
Even if you become non-resident, some UK source income and gains may still be taxable in the UK.
The UK tax year
The UK tax year runs from 6 April to 5 April.
Tax residence is considered separately for each tax year.
This means you may be UK resident in one tax year and non-resident in another, depending on your circumstances.
The year you leave the UK can be particularly important because you may be resident for the whole tax year, non-resident for the whole tax year, or eligible for split year treatment.
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 work overseas
- Your family ties
- Your accommodation ties
- Your previous UK residence
- Your pattern of visits to the UK
HMRC’s guidance explains that each tax year is considered separately under the Statutory Residence Test. You can read HMRC’s guidance on the GOV.UK Statutory Residence Test page.
The SRT can be simple in some cases and very detailed in others. It is important not to rely only on the number of days spent in the UK without considering the full test.
Days in the UK matter, but they are not the only factor
Many people focus on the number of days spent in the UK.
Days do matter, but the day count is only part of the picture.
Depending on your circumstances, the test may also consider whether you have a UK home, whether you work full time overseas, whether your family remains in the UK, whether you had previous UK residence, and how many UK ties you have.
For example, someone who spends relatively few days in the UK may still need to consider accommodation, work and family ties.
Equally, someone who spends more time in the UK may still be non-resident if they meet specific overseas work conditions.
This is why careful record keeping is important.
Split year treatment
The UK tax year does not automatically split when you leave the country.
However, in some circumstances, split year treatment may apply.
If it applies, the tax year is divided into:
- A UK part, when you are treated as UK resident
- An overseas part, when you are treated as non-resident
Split year treatment can be relevant where you leave the UK to live or work abroad, or where your circumstances change significantly during the tax year.
The rules are detailed and depend on the specific facts. You should not assume split year treatment applies just because you left the UK part way through the year.
Telling HMRC that you are leaving
If you normally complete a Self Assessment tax return, you can tell HMRC about leaving the UK through your tax return by completing the residence pages.
HMRC’s guidance says that the residence section is completed using form SA109. You can check the current guidance on the GOV.UK tax if you leave the UK page.
If you do not complete a Self Assessment tax return, you may be able to use form P85 to tell HMRC you are leaving the UK and to claim a repayment of Income Tax where appropriate.
HMRC’s P85 guidance explains that this may apply if you lived and worked in the UK, left the UK and may not be coming back, and will work abroad full time for at least one full tax year. You can check the current guidance on the GOV.UK P85 page.
Do you still need to file a UK tax return?
You may still need to file a UK Self Assessment tax return after leaving the UK.
This can apply if you:
- Receive UK rental income
- Have UK self-employment income
- Are a director of a UK company
- Have UK tax to pay
- Need to report a UK property disposal
- Need to claim split year treatment
- Need to report foreign income for a year of UK residence
- Have been issued with a notice to file by HMRC
If HMRC sends you a notice to file a tax return, you should not ignore it. Even if you believe no tax is due, you may need to file the return or ask HMRC to withdraw the notice.
UK rental income after moving abroad
If you move abroad and rent out a UK property, the rental income may still be taxable in the UK.
You may also need to consider the Non-resident Landlord Scheme.
Under this scheme, letting agents or tenants may need to deduct basic rate tax from the rental income before paying it to a landlord who usually lives outside the UK, unless HMRC agrees that the rent can be paid gross.
Even where rent is paid gross, the income may still need to be reported through Self Assessment.
Landlords moving abroad should take advice before leaving the UK or before renting out a UK property.
Selling UK property after moving abroad
Non-residents can still have UK tax obligations when selling UK property.
If you sell or dispose of UK residential or commercial property after becoming non-resident, you may need to report the disposal and pay any Capital Gains Tax due within the relevant reporting deadline.
The position can be affected by:
- Whether the property was your main home
- Whether it was rented out
- The date you became non-resident
- The property value at relevant dates
- Previous periods of occupation
- Any available reliefs
- Whether you are also taxed in another country
This is an area where advice should be taken before the sale completes where possible.
UK company directors living abroad
Moving abroad does not necessarily end your UK responsibilities as a director of a UK company.
You may still need to consider:
- UK company accounts
- Corporation Tax
- PAYE
- Dividends
- Director’s loan accounts
- UK Self Assessment
- Social security
- Tax residence of the company
- Where management and control of the company is exercised
- Tax obligations in the country where you now live
A UK company can become more complex where its director or key decision maker lives overseas.
For example, there may be questions about whether the company has created a taxable presence in another country, or whether corporate residence issues arise.
Working abroad for a UK employer
If you leave the UK but continue working for a UK employer, your tax and payroll position needs careful review.
The treatment may depend on:
- Where the duties are performed
- Whether the move is temporary or permanent
- Whether the employer has obligations overseas
- Whether PAYE should continue
- Social security agreements
- Double tax treaty provisions
- Whether you remain UK tax resident
This can be particularly complex where you work remotely from another country.
Foreign income and gains
If you are UK tax resident, the UK may tax you on worldwide income and gains.
If you are non-resident, the UK may still tax certain UK source income and gains.
The rules for foreign income and gains have changed. From 6 April 2025, the previous non-dom remittance basis regime was replaced by a new Foreign Income and Gains regime for eligible individuals. GOV.UK explains that UK residents may not have to pay UK tax on foreign income if they are eligible for Foreign Income and Gains relief, and confirms that the old non-domiciled remittance basis rules applied before 6 April 2025.
You can check HMRC’s current guidance on the GOV.UK foreign income and gains page.
This is a specialist area and advice should be taken where foreign income, overseas assets or recent arrival or departure from the UK is involved.
Double taxation
Moving abroad can mean that more than one country has taxing rights over the same income or gain.
For example, the UK may tax UK rental income, while the country where you live may also tax your worldwide income.
Double tax agreements can help prevent the same income being taxed twice, but the outcome depends on the specific treaty and the type of income.
GOV.UK explains that where you are taxed on UK income by both the UK and the country where you are resident, a double taxation agreement may allow relief before tax is paid or a refund after tax has been paid. You can check the overview on the GOV.UK tax on UK income if you live abroad page.
National Insurance and social security
Tax residence and social security are not always the same thing.
If you move abroad, you may need to consider whether you remain liable to UK National Insurance or whether social security contributions are due in the country where you now work.
This can depend on:
- Whether you are employed or self-employed
- The country you move to
- Whether there is a social security agreement
- Whether the move is temporary
- Whether a certificate such as an A1 may be needed
- Whether you continue working for a UK employer
This should be reviewed separately from income tax.
Student loans
If you have a UK student loan and move overseas, you may need to tell the Student Loans Company.
Repayment arrangements can change when you live abroad, and repayments may need to be made directly rather than through UK payroll.
This is easy to overlook but can cause problems if ignored.
Records to keep when moving abroad
Good records are essential.
You should keep evidence of:
- Date you left the UK
- Travel dates in and out of the UK
- Days worked in the UK
- Days worked overseas
- Employment contracts
- Overseas rental or purchase agreements
- UK accommodation arrangements
- Family location
- School arrangements for children
- Overseas tax registration
- Payslips and tax documents
- UK rental income records
- Property sale documents
- Communications with HMRC
A travel calendar is particularly useful where UK residence may depend on day counts and ties.
Common mistakes
Common mistakes include:
- Assuming you are non-resident as soon as you leave the UK
- Ignoring the Statutory Residence Test
- Forgetting to count UK days
- Not considering split year treatment
- Failing to tell HMRC
- Ignoring a Self Assessment notice to file
- Forgetting UK rental income
- Selling UK property without checking reporting deadlines
- Continuing to run a UK company from abroad without advice
- Assuming a double tax treaty removes all UK tax
- Forgetting student loan or National Insurance issues
These issues are easier to manage when they are considered before the move or early in the tax year.
Practical checklist before leaving the UK
Before moving abroad, consider:
- Will I remain UK tax resident under the Statutory Residence Test?
- Could split year treatment apply?
- Do I need to file a UK Self Assessment tax return?
- Should I complete form P85 or SA109?
- Will I receive UK rental income?
- Will I continue as a UK company director?
- Will I work for a UK employer while overseas?
- Will I have foreign income or gains?
- Could I be taxed in two countries?
- Is there a double tax agreement?
- Do I need advice on National Insurance or social security?
- Do I need to tell the Student Loans Company?
- What records should I keep?
How CooperFaure can help
CooperFaure can help individuals, landlords, company directors and business owners understand their UK tax position when moving abroad.
We can support with:
- Reviewing UK tax residence
- Considering split year treatment
- Preparing UK Self Assessment tax returns
- Completing residence pages where required
- Advising on UK rental income
- Reviewing UK company director issues
- Considering UK tax on property disposals
- Identifying when specialist cross-border advice may be needed
- Helping you understand what to tell HMRC and when
If you are planning to move abroad, or have already moved and are unsure what UK tax obligations remain, it is best to review the position early.