Moving or leaving the UK
Advice is often needed, when deciding to relocate to or leave the UK . As well as the practicalities of making an international move, there are a number of tax and financial considerations which it’s important to be aware of.
Leaving the UK
If you are leaving the UK to move overseas, either to work or to retire, you will need to take steps to remove yourself from the UK tax system and understand all the benefits that being a British expatriate can offer.
It’s also important to understand any expat tax implications and reporting requirements that might affect you in the overseas country where you choose to move to.
Our comprehensive range of services aim to assist in navigating the complexities of your finances, allowing you to make the most of your money.
With 22 offices worldwide, we offer face-to-face services globally. Our extensive network of experts ensures that we are accessible and available to your needs wherever you are.
With over 40 years of experience, we offer unparalleled expertise and trusted guidance to help you achieve your financial goals confidently and effectively in whatever country you call home.
Our dedicated tax planning team work in conjunction with both our financial, legal and estate planning specialists to ensure a friendly, top-quality and comprehensive service from consultation to completion.
Planning a move to the UK
If you are relocating to the UK temporarily or returning permanently after time overseas, becoming a UK resident must be planned carefully. The UK has a complex tax system, so good planning will help limit your exposure to UK tax and protect your wealth.
Please note
Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time. Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time.
How we can help
Our professionals have helped thousands of individuals relocate to or leave the UK. We also have first-hand experience of a move overseas, as some of our team have moved abroad to work in one of our overseas offices, before returning to the UK.
01
Residence and domicile
For British expatriates, or those spending a significant period of time overseas, residence and domicile will become familiar and important terms.
02
Exposure to UK income tax
As a non UK resident you may be expected to continue to pay UK taxes on UK sourced income.
03
Disregarded income
Depending on the types you are in receipt of, there are a handful of types of income which can be disregarded, and exempted from UK tax, if you are a UK non-resident and willing to lose the benefit of your personal allowance in the respective tax year.
04
Capital Gains Tax (CGT) for expats
The length of time you have spent abroad may also impact your exposure to CGT. As a non-UK resident, you will not be subject to UK Capital Gains tax, unless you are disposing of UK land and property and assets used in a UK trade. Such sales must be reported within 60 days to HMRC, with the associated tax liability settled.
05
When will I be seen as a UK resident?
Residence is determined by working through the Statutory Residence Test – a legationary framework put in place by HMRC to work out if you qualify for non-UK resident status.
06
Split year treatment
When returning to or leaving the UK you may be able to split the tax year into two parts. However, this is a complex area of the legislation and specialist advice is recommended. This is rarely based on your intention or the point of your physical arrival or departure to and from the UK and can see many individuals UK resident from the start of and entirety of the tax year.
Please note
Following the 2024 Spring Budget and the support given by the successive Labour Government, the expectation is that the legal term ‘domicile’ will cease to be relevant for UK tax purposes from 6 April 2025. The information included within this page is true at the time of publication. In addition to changes to the abolition of the remittance basis it is anticipated that a reform to IHT will not consider the scope of an individuals liability to IHT on domicile, but on their residence position in the previous 10 years.
Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time.
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All you need to know about expat tax
There are a lot of considerations when moving overseas, however the following topics are some of the key elements you should consider when moving overseas.
You will be required to fill in a P85 form and submit a Self-Assessment Tax Return for the tax year when you leave the UK. This can be submitted via post or commercial software but cannot be done online using HM Revenue’s systems.
First, understand the date you will become a non-UK tax resident. From that date your UK tax liabilities are likely to be limited; but that needs to be understood as well. You will also need to consider your tax residence status in the country you move to and any tax liabilities and reporting requirements that may arise there.
If you are resident in more than one country your tax residence status will then be determined by “tie breaker” included in an applicable double taxation agreement if there is such an agreement between those two countries.
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