Tax Residence

Your tax residence for a certain tax year depends on how long you spend in the UK during that year.

You are automatically UK tax resident if:

• You spent 183 or more days in the UK during the tax year
• Your only home was in the UK and you spent at least 30 days there during the tax year.

You are automatically non-resident if:

• You spent fewer than 16 days in the UK during the tax year, but have been UK resident for the previous three tax years
• You spent fewer than 46 days in the UK during the tax year and haven’t been UK resident for the previous three tax years
• You work full-time abroad and spent fewer than 91 days in the UK (with a maximum of 30 days working in the UK).

Still unsure? We can help, just get in touch for expert advice.

Your tax residence for a certain tax year could change if:

• You buy or sell a home in the UK
• You start or finish working abroad
• Your family moves in or out of the UK
• You spend more or less time in the UK
• You get married, separated, or have children in the UK.

If any of these situations apply to you, we can advise on what impact it will have on your tax residency and help you manage the changes efficiently.

Everyone has to pay UK tax on UK income, but your tax residence and domicile determine how much UK tax you pay on foreign income and capital gains.

UK tax residents who are UK domiciled must pay UK tax on foreign income and capital gains.

Non-domiciled UK tax residents don’t pay UK tax on foreign income or capital gains if:

• They are less than £2,000 in the tax year
• Certain tax reliefs or allowances apply to them
• They chose to pay tax on a remittance basis. This when you are taxed only on your UK income and gains. Foreign income and gains you keep out of the country won’t be taxed.

Non-UK residents don’t pay UK tax on any foreign income. They only pay capital gains tax:

• On UK residential property
• In some cases, if someone was previously UK tax resident and returns to UK residency within a certain timeframe.