Understand UK Taxation & Residency Rules

You could be subject to UK tax if you are deemed a tax resident, or hold UK assets

Our 8-page UK Taxation for Expats guide includes lots of information about UK residence and taxation, as well as the latest 2020/2021 UK tax tables and a UK residency test flowchart.

Your UK residence status affects whether you need to pay tax in the UK on your foreign income.

Are you liable to UK income tax?

UK residents normally pay UK tax on all their income, whether it’s from the UK or abroad. But there are special rules for UK residents whose permanent home (‘domicile’) is abroad.

If you don’t live in the UK, you must satisfy residency rules to sever your ties to UK taxation. Those returning to the UK during a UK tax year (6th April to 5th April) can declare a split year. This would mean you are drawing a line in the sand for tax residence, and paying the correct portion of tax to each country.

Our UK Tax Guide

In our UK tax and residence guide, we explain UK residency rules, offering a full UK residence test flowchart to help you assess your tax residence. We explain the risks of UK ties and offer planning tips for those with a UK resident spouse.

UK taxation can be a minefield, and getting the right advice is paramount. We deal with cross-border financial and tax advisers, as well as experienced UK accountants with a track record in international tax and UK tax reporting.