Tax if you leave the UK to live abroad (2024)

FAQs

Can I get all my tax back if I leave the UK? ›

HMRC will work out if you're owed a refund for the tax year you're leaving the UK. If you are due a refund, HMRC can either pay it to you or someone else on your behalf - they are known as your 'nominee'. HMRC will only send a cheque within the UK - either directly to your address or to your nominee at their address.

As long as you pay tax on your wages in your home country, you will not have to pay tax in the UK. You must file a Self Assessment tax return, together with a completed SA109 form. Use the 'other information' section of your SA109 to include: the dates you were stuck in the UK because of coronavirus.

Whether you need to pay depends on if you're classed as 'resident' in the UK for tax. If you're not UK resident, you will not have to pay UK tax on your foreign income. If you're UK resident, you'll normally pay tax on your foreign income.

90 day tie – the individual has been present in the UK for more than 90 days in either of the previous two tax years. Country tie – the individual is present in the UK at midnight in the tax year as much as (or more than) they are present in any other single country. This tie applies to 'leavers' only (see below).

You can make a claim for the current tax year and the previous 4 years.

Yes, it is a good idea to tell your bank that you're moving. If you don't, you could find that access to services like online banking is restricted once you've moved abroad. The bank could also freeze or close your account.

In most normal circ*mstances you will not lose your British citizenship if living abroad unless you opt to renounce your status as a British citizen or it is revoked in certain exceptional circ*mstances. If you have any questions about British Citizenship, our experienced immigration lawyers can help you.

HMRC can chase you whether you are overseas or anywhere else, however, there is no chance of enforcing the rules and regulations of tax according to UK law in any other country. Foreign authorities will act like their rules and set of laws for tax.

You can live abroad and still be a UK resident for tax, for example if you visit the UK for more than 183 days in a tax year. Pay tax on your income and profits from selling assets (such as shares) in the normal way. You usually have to pay tax on your income from outside the UK as well.

Is there double taxation between the US and the UK? ›

The US-UK tax treaty is an essential tool for US citizens living in the UK, offering protection against double taxation, reduced withholding tax rates, and clarity on tax residency. While the treaty provides numerous benefits, claiming them requires understanding and filing specific forms.

If you spend fewer than 16 days in the UK in a tax year than you will always be non-resident in the UK for that year. If you spend 183 days or more in the UK then you almost certainly will be resident in the UK for that year.

If you are leaving the UK then you would complete a form P85 to claim any repayment due. On the form you can request repayment into a UK bank account.

Non-residents only pay tax on their UK income - they do not pay UK tax on their foreign income. Residents normally pay UK tax on all their income, whether it's from the UK or abroad.

If you return to the UK within 5 years

You may have to pay tax on certain income or gains made while you were non-resident. This doesn't include wages or other employment income.

If your refund exceeds your total balance due on all outstanding tax liabilities including accruals, you'll receive a refund of the excess unless you owe certain other past-due amounts, such as state income tax, child support, a student loan, or other federal nontax obligations which are offset against any refund.

Tax returns sent on or before the deadline

You should keep your records for at least 22 months after the end of the tax year the tax return is for. If you send your 2023 to 2024 tax return online by 31 January 2025, keep your records until at least the end of January 2026.

You'll get a penalty if you need to send a tax return and you miss the deadline for submitting it or paying your bill. You'll pay a late filing penalty of £100 if your tax return is up to 3 months late. You'll have to pay more if it's later, or if you pay your tax bill late.

If you're a non-resident with taxable UK income, you'll need to submit a Self Assessment tax return, with any additional non-resident pages required also filed.