Moving Abroad?
Get Expert Tax Advice When Leaving The UK & Ensure Your Tax Affairs Are In Order
Leaving the UK comes with important tax responsibilities. Properly managing your UK tax affairs before and after departure can save you time, money, and stress.
At Expat Tax Solutions, we guide individuals through the process of leaving the UK tax system smoothly and compliantly.
Understand Your Ongoing UK Tax Obligations
Where you spend your time and where you have homes are key factors in determining your exposure to tax. Proactively understanding your UK tax status and knowing the amount of time you can spend back in the UK prior to leaving is imperative to ensure you are fully prepared and not caught out with any unexpected tax bills or penalties.
Our team will ensure you are fully aware of your ongoing obligations and provide you with tailored tax advice when leaving the UK to help minimise your ongoing obligations.
Know Your Tax Residence Status
UK tax residence is determined by the Statutory Residence Test (SRT). Relevant factors include:
▸ Working and personal time spent in the UK
▸ Access to UK homes
▸ Where your family reside
Knowing your UK tax residence status is vital in understanding your ongoing exposure to UK tax.
Manage Your UK Tax Obligations
You will be required to continue to file UK tax returns if you have ongoing sources of UK income and gains. These include:
▸ Self-employment income
▸ UK rental income
▸ Dividends from UK companies
▸ UK bank interest
▸ Gains from selling UK residential property
Continuing to meet your UK reporting obligations is essential to avoid penalties.
Deregister From UK Tax System
If you have no ongoing UK income, you may no longer be required to file UK tax returns.
If you have previously filed UK tax returns, we can de-register you from UK self-assessment to ensure HMRC no longer expect you to file UK tax returns.
This will ensure you are not issued with late filing penalties for tax returns you are not required to file.
UK Tax Checklist When Leaving The UK
Tell HMRC You're Leaving
Depending on your circumstances, you may be required to notify HMRC that you are leaving via Form P85. This will enable HMRC to issue a tax repayment or tax code NT to cease PAYE withholding if you remain on UK payroll.
Claim Your UK Tax Refund
Individuals who cease UK employment part way through the year are often entitled to a tax refund due to the mechanics of the PAYE system. It is important to determine whether this is the case and reclaim the overpaid tax as soon as possible.
File A Departure Tax Return
You may be required to file a self-assessment tax return to declare your tax residence status and any ongoing sources of UK taxable income.
Frequently Asked Questions – Tax Advice When Leaving the UK
When leaving the UK, it’s important to get advice on your UK tax residency status, Capital Gains Tax, and income tax on ongoing UK-sourced income. It is essential to seek advice as soon as possible to be able to break UK tax residence and minimise your UK tax exposure.
If you become UK tax non-resident, you may still need to pay UK tax on UK-sourced income, such as rental income, pensions, or dividends. However, certain UK rules and Double Taxation Agreements may mean you no longer pay any UK tax. If you become non-resident and have no ongoing UK sourced income, you shouldn't expect to have to pay any UK tax.
Your UK tax residence status is determined by the Statutory Residence Test which assesses your UK time, location of homes and family. We recommend that expert advice is obtained to determine your UK tax residence status and how many days you can continue to spend in the UK.
You do not need to inform HMRC that you have left the UK however you will need to inform them of any ongoing UK taxable income or to claim a UK tax refund if you are entitled to one. This is done via either Form P85 or a self-assessment tax return and the optimal approach depends on your specific circumstances.
Non-residents pay Capital Gains Tax on disposals of UK property and land, and additional reporting requirements apply that differ to residents. You may also need to pay Capital Gains Tax on assets that you sell while non-resident when you return to the UK if you return within five years.
If you move to a country that has a double tax treaty with the UK, you can usually claim relief to avoid being taxed twice on the same income. This is particularly relevant for individuals who remain UK tax resident however non-residents can also claim relief.
UK pension income is UK sourced and therefore remains taxable in the UK after you leave however, if you move to a country that has a double taxation agreement with the UK, it may be possible to exempt your pension income in one country to prevent double taxation.
How Can We Help?
Our expert tax advisers can provide you the following tax advice when leaving the UK:
▸ Review your tax position before you leave
▸ Submit forms to HMRC on your behalf
▸ Advise on tax residency and double taxation treaties
▸ Help you manage ongoing UK income (like rental property)
▸ Support you with ongoing UK tax returns
▸ De-register you from UK self-assessment
Schedule a free consultation for bespoke advice tailored to you.