Moving Abroad: Tax Residence & Obligations

Tax Residence

Your tax obligations depend on your tax residence status, determined by the Statutory Residence Test (SRT). This looks at factors including:^[2]

How many days you spend in the UK
Whether you have a home in the UK
Your work patterns (UK vs overseas)
Your family and social ties

If You Remain UK Resident

UK residents are taxed on their worldwide income. Simply working abroad for part of the year doesn’t make you non-resident.^[1]

If You Become Non-Resident

As a non-UK resident, you’re generally only taxed on UK-source income, such as:^[1]

UK rental income
UK employment income for work done in the UK
UK pension income
Income from a UK business

Telling HMRC You’re Leaving

Complete HMRC’s form P85 when you leave the UK. This tells HMRC your departure date and helps them work out if you’re due a tax refund for the year of departure.^[3] If you keep UK rental or business income after you leave, you’ll still need to report it — you can file your Income Tax returns online from anywhere with HMRC-recognised software.

Split-Year Treatment

In the year you leave (or arrive), you may qualify for split-year treatment. This means you’re taxed as a UK resident for only part of the year, rather than the full year.^[2]

Double Taxation

The UK has tax treaties with over 130 countries. If your new country also taxes your income, the treaty usually prevents you being taxed twice on the same income.^[4]

National Insurance

Your NI position depends on where you work and whether the UK has a social security agreement with your new country. You may be able to continue paying voluntary Class 2 NI to protect your State Pension entitlement.^[5]

Get advice early: Tax residence is complex and the consequences of getting it wrong are significant. Consider taking professional advice before you leave.

Frequently Asked Questions

Do I still pay UK tax if I move abroad?

It depends on your tax residence status under the Statutory Residence Test. If you become non-UK resident, you are generally only taxed on UK-source income such as rental income, UK employment income, and UK pensions.

How do I tell HMRC I am leaving the UK?

Complete HMRC’s form P85 when you leave. This tells HMRC your departure date and helps them work out if you are due a tax refund for the year of departure.

What is split-year treatment?

In the year you leave or arrive, you may qualify for split-year treatment, meaning you are taxed as a UK resident for only part of the year rather than the full year. This can significantly reduce your UK tax liability in the year of departure.

Can I still pay National Insurance if I move abroad?

Depending on your destination and whether the UK has a social security agreement with that country, you may be able to continue paying voluntary Class 2 National Insurance to protect your State Pension entitlement.

Sources

Tax on foreign income — GOV.UK
Statutory Residence Test — GOV.UK
Tell HMRC you're leaving the UK — GOV.UK
Tax treaties — GOV.UK
National Insurance if you go abroad — GOV.UK