The Statutory Residence Test (SRT) is the set of UK rules used to determine whether an individual is UK tax resident for a particular tax year. If you are unfamiliar with the SRT or want to see how the tests link together, please see our complete guide to the Statutory Residence Test.
The SRT contains the following three sections:
- The UK automatic overseas tests
- The UK automatic residence tests
- The sufficient ties test
However, the tests are applied in a specific order. The first automatic UK test considers whether you have spent 183 days or more in the UK during the tax year. If you have, you are automatically UK tax resident and no further SRT tests need to be considered.
If you have spent fewer than 183 days in the UK, the automatic overseas tests are then considered. If you do not meet any of the automatic overseas tests, the second and third automatic UK tests are considered. If none of the automatic UK tests apply, the sufficient ties test is then used to determine your UK tax residence status.
This guide focuses specifically on the UK automatic overseas tests and explains the conditions that must be considered first when assessing your UK tax residence.
Although this guide provides an overview of the UK automatic overseas tests, determining UK tax residence can be complex and depends on your individual circumstances. We recommend obtaining specialist advice to assess and confirm your UK tax residence status.
For further information or a complete professional assessment of your UK tax residence position, please contact Expat Tax Solutions.
Why Is My Residence Status Important?
UK tax residence is the key driver behind how your income is taxed in the UK and how it should be reported.
UK tax residents are taxable on their worldwide income and gains, whereas non-residents are taxable in the UK only on their UK-source income and UK property gains.
For individuals with income or gains arising in multiple jurisdictions, or for individuals who work internationally, the difference in their UK tax liability as a resident compared to a non-resident can be extremely significant.
The First UK Automatic Overseas Test
The first UK automatic overseas test states that an individual will be UK tax non-resident for the entire tax year if:
The individual was UK tax resident in at least one of the prior three tax years and spends fewer than 16 days in the UK during the tax year.
This test is therefore particularly relevant for individuals who have recently departed the UK since it only applies to those who were UK tax resident in at least one of the previous three tax years.
Given the low threshold of fewer than 16 days, this test is particularly relevant to individuals who spend very little time in the UK during the tax year. If the test is not met, the second automatic overseas test should then be considered.
The Second UK Automatic Overseas Test
The second UK automatic overseas test states that an individual will be UK tax non-resident for the entire tax year if:
The individual was non-resident in all of the previous three tax years and spends fewer than 46 days in the UK during the tax year.
This test provides a higher threshold of fewer than 46 UK days; however, it only applies to individuals who were non-resident for the three years prior to the tax year in question.
This test can therefore be particularly relevant to individuals who have spent the previous three tax years living outside the UK, including digital nomads who have been outside the UK for several years.
The Third UK Automatic Overseas Test
The third UK automatic overseas test (full-time work overseas) states that an individual will be UK tax non-resident for the entire tax year if:
- The individual has fewer than 91 days of UK presence during the tax year;
- Works for more than 3 hours in the UK on fewer than 31 days during the tax year;
- Works full-time overseas during the tax year; and
- Does not have a ‘significant break’ from overseas work during the tax year.
‘Sufficient hours’ generally requires the individual to work an average of at least 35 hours per week overseas during the year. Days on which the individual works for more than 3 hours in the UK are disregarded when calculating whether sufficient hours have been worked overseas. Certain days of annual leave, sick leave and parental leave can also be treated differently where the individual would otherwise have worked overseas. HMRC’s calculation for determining the average number of hours worked overseas can be found here.
A ‘significant break’ from overseas work occurs when at least 31 consecutive days pass without a day on which the individual works for more than 3 hours overseas, or would have worked for more than 3 hours overseas but for annual leave, sick leave or parental leave.
This test will therefore commonly apply to individuals engaged in full-time work abroad who limit their UK presence to 90 days and work for more than 3 hours in the UK on no more than 30 days.
The third automatic overseas test does not apply to certain individuals who work on vehicles, aircraft or ships at any time during the tax year and meet specific conditions relating to cross-border trips.
What If The UK Automatic Overseas Tests Are Not Met?
If you do not meet the conditions of any of the UK automatic overseas tests, the second section of the SRT (the automatic residence tests) applies.
If none of the automatic residence tests apply, then the final section of the SRT (the sufficient ties test) is applied.
UK Tax Obligations For Non-Residents
Individuals are not usually required to notify HMRC that they have become non-resident when they leave the UK however the following obligations are typical when leaving the UK.
UK Self-Assessment Tax Return
You may be required to file a self-assessment tax return as a non-resident or split year resident to declare and pay tax on your UK taxable income after your departure. UK tax returns are due for submission by 31 January following the end of the tax year and a full list of filing criteria can be found here.
Form P85
Form P85 can be used if you wish to claim an in-year tax refund as a result of leaving the UK or if you want to obtain an NT (no tax) code to prevent UK PAYE withholding on UK employment income while outside the UK.
If you are filing a self-assessment tax return, we do not typically recommend that Form P85 is filed to obtain a refund as your position is instead reconciled on your tax return.
Non-Resident Capital Gains Tax Return
If you sell UK property or land while non-resident, you may be liable to UK Capital Gains Tax on the disposal. The rules depend on the type of property and when it was acquired, with special rules applying to UK residential property acquired before 6 April 2015.
You are also required to report the disposal to HMRC within 60 days of completion and pay any Capital Gains Tax due within the same 60-day period. This reporting requirement applies even if no tax is ultimately payable.
Record Keeping
UK tax residence is an area that HMRC may scrutinise when reviewing a tax return. As the SRT relies heavily on where you spend your time, your homes and, where relevant, your working pattern, it is important to retain appropriate evidence supporting your residence position.
This can include flight bookings and immigration records, evidence relating to your homes, meeting records and office attendance data.
We recommend retaining records supporting your UK tax residence position for at least five years from 31 January following the end of the tax year. For example, records relating to the 2026/27 UK tax year should be retained until at least 31 January 2033.
The UK Automatic Overseas Tests FAQs
What are the UK automatic overseas tests?
The UK automatic overseas tests are the first tests applied under the UK Statutory Residence Test. If you meet any one of the tests, you are automatically treated as UK tax non-resident for the tax year.
They relate to your residence in the UK in previous tax years, the number of days you spend in the UK during the current tax year, and whether you work full-time overseas.
Will my UK home impact my residence position?
Whether you have a home in the UK is not a factor for the automatic overseas tests however it may be relevant for some of the automatic residence tests and the sufficient ties test.
As the automatic overseas tests take precedence in the SRT, if you meet any of these you will be UK tax non-resident and retaining a UK home will not impact your residence status.
How much time can I spend in the UK to be non-resident?
There is no single number of days that applies to everyone. Depending on your circumstances and residence history, an automatic overseas test may apply if you spend fewer than 16 days or fewer than 46 days in the UK, while the full-time work abroad test includes a condition requiring you to spend fewer than 91 days in the UK. If none of the automatic overseas tests apply, the automatic residence tests and sufficient ties test must also be considered.
Am I non-resident if I spend fewer than 183 days in the UK?
It is a common misconception that individuals are only UK tax resident if they spend more than 183 days in the UK. While it is true that you will be UK tax resident if you spend 183 days or more in the UK, it is not true that spending fewer than 183 days in the UK will result in non-residence as several other factors will apply.
Do I need to meet all of the UK automatic overseas tests?
No. You only need to meet one of the UK automatic overseas tests to be automatically treated as UK tax non-resident for the tax year.
What happens if I do not meet an automatic overseas test?
If you do not meet any of the automatic overseas tests, you move on to consider the automatic residence tests. If those tests do not determine your status, your UK residence position is then assessed using the sufficient ties test.
Can I be non-resident under the UK automatic overseas tests for only part of the tax year?
Generally, no. If a UK automatic overseas test applies, you are treated as a non-resident for the entire tax year. However, split-year treatment can potentially divide a tax year into a UK-resident part and a non-resident part where the relevant conditions are met.