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 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 spend in the UK.

It depends on your circumstances. If you were UK resident in one or more of the previous three tax years and spend fewer than 16 days in the UK in a tax year, you will automatically be non-resident. If you spend 183 days or more in the UK in a tax year, you will normally be UK resident. Between those limits, the number of days you can spend here depends on how many ties you keep to the UK, such as a home, family or UK work. Our guide to the Sufficient Ties Test explains how this works, and the Automatic Overseas Tests cover the cases where you are automatically non-resident.

Split-year treatment can divide the tax year in which you leave the UK into two parts: a UK part, when you are taxed as a UK resident, and an overseas part, when you are treated as non-resident. Your foreign income for the overseas part of the year is then generally not taxed in the UK. It is not automatic, and you can only claim it if you meet one of the qualifying cases, such as starting full-time work overseas or ceasing to have a home in the UK. We can carry out a UK tax residence assessment to confirm whether split-year treatment applies to you.

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 Form P85 or a self-assessment tax return, and the optimal approach depends on your specific circumstances.

Yes. If you have already left the UK, it is not too late to put your tax affairs in order. We can help you confirm your UK tax residence position, file any outstanding UK tax returns, claim any refunds you are owed, and make a voluntary disclosure to HMRC if past income or gains were not reported. Acting sooner generally reduces the interest and penalties that can build up.

Non-residents pay Capital Gains Tax on disposals of UK property and land, and additional reporting requirements apply that differ from those for residents. You may also need to pay Capital Gains Tax on assets that you sell while non-resident if you return to the UK within five years.

The UK does not charge an exit tax on individuals simply for emigrating, so leaving the UK does not trigger Capital Gains Tax on your worldwide assets. There are exceptions to be aware of. UK property and land stay within the UK tax net after you leave, and the temporary non-residence rules can bring gains and certain income, realised while you were abroad, back into UK tax if you return to the UK within five years. A UK tax planning consultation before you leave can help you plan the timing of any disposals.

Rental income from UK property remains UK-sourced income, so it stays taxable in the UK after you leave. Under the Non-Resident Landlord Scheme, your letting agent or tenant may have to deduct basic rate tax from the rent before paying you, unless you apply to HMRC to receive it without deduction. You report the income and any tax paid through a UK self-assessment tax return. If you later sell the property, you must report the sale and pay any Capital Gains Tax within 60 days of completion. Our guides on UK tax on rental income for non-residents and non-resident Capital Gains Tax on UK property cover both in detail.

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.

You can normally keep an existing ISA after you leave the UK, and it stays free of UK tax on income and gains. However, once you are non-resident you can no longer pay new money into it in most cases, you should tell your ISA provider that you have left, and your new country of residence may tax the interest, dividends or gains. A UK tax planning consultation can help you decide whether to keep, transfer or close your ISA.