Frequently Asked Questions
Do British expats pay UK tax?
British expats who are non-UK resident only pay UK tax on UK-sourced income (rental, pension, employment income from UK sources). Worldwide income is not taxable in the UK if you are non-resident.
How do I determine if I am UK tax resident?
You use the Statutory Residence Test (SRT). Key factors include days spent in the UK, work ties, family ties, accommodation ties, and previous UK residency. The test has automatic overseas tests and tie tests.
What UK income is always taxable regardless of residence?
UK property rental income, UK employment income, UK pension income, UK bank interest, and UK dividends are all subject to UK tax for non-residents.
Can non-resident expats claim the UK personal allowance?
Most British citizens and EEA nationals can claim the UK personal allowance against UK income. However, Brexit and specific treaties affect this — check your eligibility.
Do I need to file a UK tax return as an expat?
If you have UK income above the personal allowance, rental income, or income subject to PAYE, you likely need to file a UK self-assessment return. Contact HMRC or an expat tax specialist.
What is the Statutory Residence Test?
The SRT determines UK tax residency. You are automatically non-resident if you spend under 16 days in the UK (or 46 if not UK resident in the previous 3 years). Spending over 183 days makes you automatically resident.
How is UK rental income taxed for non-residents?
UK rental income is taxed as property income. The Non-Resident Landlord Scheme (NRLS) requires tenants or agents to withhold basic rate tax, which you then reconcile on your tax return.
What is the Non-Resident Landlord Scheme?
NRLS requires letting agents or tenants to withhold 20% basic rate tax from UK rental payments to non-resident landlords, paying it to HMRC quarterly, unless HMRC exempts the landlord.
Can expats pay UK pension into ISA?
No. Non-UK residents cannot contribute to an ISA. Contributions require UK residency during the tax year. However, existing ISAs retain their tax-free status while you are abroad.
Do British expats pay UK CGT?
Non-resident individuals pay UK CGT on UK residential property (including gardens and grounds). For other UK assets, CGT may apply depending on the period of absence and return to the UK.
What tax do I pay on a UK state pension if living abroad?
UK State Pension is taxable income in the UK. If there is a double tax treaty between the UK and your country of residence, pension may only be taxable in one country.
Do I pay UK tax if I move back to the UK?
Yes. When you return and become UK resident, you are taxed on your worldwide income from the date of return (or start of the UK tax year depending on split year rules).