Tax Planning for Internationally Mobile Lives
When you live, work or hold assets in more than one country, more than one tax authority may have a claim on your income and gains, and the rules rarely line up. NEBA Private Clients helps you understand your position, use legitimate allowances and structures, and stay compliant in every country that matters to you.
Do I pay UK tax if I live abroad?
If you are not UK resident, you generally pay UK tax only on UK income, such as rent from a UK property, UK pensions, savings interest and pay for work done in the UK, and on gains from UK property or land. Foreign income and gains are generally outside UK tax while you are non-resident.
British citizens keep the UK Personal Allowance even when they are not UK resident, so a modest amount of UK income can still be received tax-free. You may need to file a UK Self Assessment return, for example if you rent out UK property, and non-residents must file by post or through commercial software rather than HMRC’s online service. HMRC notes that non-residents do not usually pay UK tax on the UK State Pension. The country where you live may also tax your UK income, which is where double-taxation agreements come in.
How does HMRC decide whether I am UK resident?
UK residence is decided each tax year (6 April to 5 April) by the Statutory Residence Test, which looks at the days you spend in the UK, where your home is, where you work and your UK ties. Your passport does not decide it, and your status can change from one year to the next.
In broad terms, you are usually non-resident if you spend fewer than 16 days in the UK in a tax year (46 days if you were not UK resident in any of the previous three tax years), or if you work full-time abroad, averaging at least 35 hours a week, and spend fewer than 91 days in the UK, no more than 30 of them working. You are usually resident if you spend 183 days or more in the UK. Between those points, the number of days you can spend in the UK depends on your ties, such as family, a home, work or time spent in the UK in earlier years.
What happens in the tax year I leave or return?
When you move abroad or come back, the tax year can often be split into a UK part and an overseas part, known as split-year treatment, so you are taxed as a UK resident only for the UK part. The conditions are strict: for example, it does not apply if you live abroad for less than a full tax year before returning.
When you leave, you must tell HMRC, using form P85 or the residence pages (SA109) of your Self Assessment return. Planning the timing of a move, and of decisions such as selling assets or drawing pension benefits, around the split year can make a significant difference.
What changed for expats in April 2025?
From 6 April 2025 the UK replaced domicile with residence-based rules for income tax, capital gains tax and inheritance tax. Two changes matter most to expatriates: a new four-year relief for people returning after ten years abroad, and inheritance tax that now follows long-term UK residence.
- Returning after ten years or more abroad: if you become UK resident after at least ten consecutive tax years of non-residence, you may be able to claim the four-year foreign income and gains regime. It relieves eligible foreign income and gains for your first four years of UK residence, but you lose your Personal Allowance and capital gains annual exemption in any year you claim.
- Inheritance tax: exposure to UK inheritance tax on worldwide assets now depends on being a long-term UK resident, broadly resident for at least ten of the previous 20 tax years. Someone who has lived in the UK for many years can stay within its scope for between three and ten years after leaving. See our Inheritance Tax page.
Will I be taxed twice?
The UK has double-taxation agreements with many countries to stop the same income or gain being taxed twice. Relief is not always automatic: it often has to be claimed, sometimes with a certificate of residence, and the agreement decides which country has the first right to tax each type of income.
How your UK pension, rental income and investment income are treated depends on the agreement between the UK and the country where you live, so it is worth checking before income starts to flow.
What should I do with UK property, ISAs and investments when I move abroad?
You can usually keep UK property, ISAs and investments when you move abroad, but each is treated differently. UK rental income stays taxable in the UK, a sale of UK property must be reported to HMRC within 60 days, and you cannot add new money to an ISA while you are non-resident.
- UK property: rental income is taxed in the UK, often through the Non-resident Landlord Scheme. If you sell UK residential property while non-resident, you must report the sale and pay any tax within 60 days of completion, even if there is no tax to pay or you made a loss.
- ISAs: you can keep your ISA open and it stays free of UK tax, but you cannot pay into it while non-resident and must tell your provider when you leave. The country where you live may not recognise the ISA’s tax-free status.
- Pensions and investments: the right structure depends on where you live now and where you expect to retire. See UK Pension Transfers for Expats and Investment Management.
How NEBA Private Clients helps
- We help you establish your residence position in each country relevant to you.
- We plan the order of events around a move: the timing of sales, pension decisions and contributions before you leave or return.
- We structure investments and pensions to suit where you live and where you expect to retire.
- We work alongside specialist tax advisers in each jurisdiction where needed.
- We keep your plan under review as rules change.
We advise expatriates through regulated entities in the UAE, Singapore, Malaysia and South Africa, and are affiliated to a UK firm authorised by the Financial Conduct Authority. Planning a move home? See UK Repatriation.
Important: tax rules and their interpretation can change, and the value of any relief depends on your individual circumstances. This page is general information, not personal tax advice.
Reviewed by Christina Vairavan, Head of Legal and Compliance, 12 October 2026.
Frequently asked questions
Do I need to tell HMRC I am leaving the UK?
Yes, if you are leaving to live abroad permanently or to work abroad full-time for at least one full tax year. If you do not normally file a tax return, use form P85; if you do, complete the residence pages (SA109) of your Self Assessment return. Telling HMRC lets them check whether you are due a refund.
Can I still use my UK Personal Allowance as an expat?
Yes, if you are a British citizen, an EEA citizen, or worked for the UK government during the tax year, and in some cases under a double-taxation agreement. As a non-resident you claim it after the end of each tax year in which you have UK income, on form R43 or through your Self Assessment return.
Can I keep paying into my ISA after I move abroad?
No. You can keep your ISA open and it stays free of UK tax, but you cannot add new money while you are non-resident, unless you are a Crown employee working overseas or their spouse or civil partner. You can pay in again once you return and become UK resident.
Do I pay UK tax if I sell my UK home after moving abroad?
You must report the sale to HMRC within 60 days of completion, even if no tax is due. Whether tax is payable depends on the gain and on reliefs such as Private Residence Relief for years it was your main home. Getting advice before you sell can help you plan the timing.
How long can I visit the UK without becoming resident again?
It depends on your circumstances. If you work full-time abroad, you can usually spend up to 90 days in the UK in a tax year, provided no more than 30 of them are working days. Otherwise the limit depends on your UK ties, so it is worth checking before a long visit.
I have lived abroad for more than ten years. Does the April 2025 change help me if I return?
It may. If you become UK resident after at least ten consecutive tax years of non-residence, you may be able to claim the four-year foreign income and gains regime, which relieves eligible foreign income and gains for your first four years back. It has trade-offs, including losing your Personal Allowance in any year you claim, so it needs planning before you return.
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