Leaving the UK: tax advice on residence, split year and temporary non-residence

You need to meet one of the automatic overseas tests, or pass the sufficient ties test with few enough UK ties for your day count. If you were UK resident in any of the previous three years, the automatic overseas test is fewer than 16 UK days, or a full-time work abroad test. Residence is judged for the whole tax year, so the rest of your pattern matters too.

Possibly. If you leave part-way through a tax year, split year treatment can treat the period after you go as non-UK resident, so overseas income and gains after departure fall outside UK tax. It only applies if you meet a specific case, such as starting full-time work abroad or ceasing to have a UK home and spending limited time here. It is not automatic, so evidence matters.

They are anti-avoidance rules. If you were UK resident for at least four of the seven tax years before leaving, and return to UK residence within five years, certain gains and income received while abroad can be taxed in the year you return. The aim is to stop people leaving briefly to realise a gain or extract profits tax-free.

Only if you stay non-resident for long enough. Non-residents are generally outside UK capital gains tax on shares, but if you return within five years the temporary non-residence rules can tax the gain in your year of return. Gains on UK land and certain property-rich companies are also still taxable. The timing of a sale needs planning before you leave.

It is possible, but restricted. Distributions from a close company paid during a period of temporary non-residence can be taxed in the UK on your return if you come back within five years, and recent legislation has changed how these rules work. The treaty with your new country matters too. We review the company's reserves and the five-year picture before any dividend plan.

Yes, for a time. Under the residence-based rules, if you were UK resident for at least 10 of the previous 20 tax years, your worldwide assets stay in scope for between three and ten tax years after you leave, depending on how long you lived here. UK property always remains in scope. The tail is long for long-term residents, so estate planning should start early.

It depends on how many of the last 20 tax years you were UK resident when you leave. With 10 to 13 years of residence the tail is three years, 14 years gives four, then each extra year adds one, up to ten years if you were resident in all 20. After 10 consecutive years of non-residence, the test resets, even if you later return.

Yes. UK property income remains taxable in the UK for non-residents, usually after allowable expenses, and you must report it on a Self Assessment return. Non-residents also pay capital gains tax on UK property and report disposals to HMRC within 60 days. Your new country may tax the income too, with treaty relief to prevent double taxation. See our Non-UK Resident Landlords page.

UK pension schemes generally keep their rules, and you can usually remain a member. Contributions by a non-UK resident without UK earnings are limited. Lump sums and income paid while you are abroad may be taxed in the UK or your new country depending on the treaty, and flexible drawdown payments can be caught by the temporary non-residence rules. Check before drawing benefits.

Not necessarily. Gains on UK residential property are taxable for non-residents and must be reported to HMRC within 60 days of completion. Your main home may qualify for private residence relief for the period you lived in it, but time after you leave is treated differently. Timing, ownership and use all matter, so we model selling before departure against selling afterwards.

Usually yes. A departure year often involves a mix of UK income, gains and a claim for split year treatment, and the return is where you declare your residence status. You may also need to report disposals and UK property income in later years. Leaving without filing, or without keeping day-count records, is a common cause of later HMRC questions.

Yes. HMRC can open an enquiry into your residence, often looking at how many days you spent here, where your family lives, where you work and whether you kept a UK home. Contemporaneous records are the best defence, such as diaries, flight and phone records and contracts. We help you build an evidence file before you leave, so the position is easy to show.

The Gulf often has no personal income tax, so UK tax is the main concern: proving non-residence, controlling UK days, handling UK property, and the temporary non-residence rules if you return within five years. Inheritance tax remains a live issue because treaties with Gulf states do not cover it. We work alongside your local advisers to cover the whole picture.

Yes, but it is not simple. A UK home you can use is an accommodation tie, and having a UK home available for a period can also help trigger an automatic UK residence test if you spend enough time in it and have no overseas home. Ties and days must be balanced. Letting the property out or keeping it unavailable can alter the analysis.

Ideally six to twelve months before leaving. That gives time to consider disposals of assets and shares, the timing of dividends, pensions, the IHT tail, trusts, wills and any need to restructure companies. Once you have left, many of the planning options are gone. The first call is free, and we reply the same working day.