United Kingdom

Quick Facts

• Tax residency threshold: No single rule. UK uses the Statutory Residence Test (SRT) which applies automatic tests first, then a "sufficient ties" test
• What counts as "day": A day is counted if you are in the UK at midnight (end of day). Some exceptions apply (transits, exceptional circumstances)
• Consequence: UK residents pay tax on UK-source income and (depending on domicile status) potentially worldwide income; nonresidents taxed only on UK-source income
• Key complexity: The SRT is multi-layered with automatic overseas tests, automatic UK tests, and a ties-based test. Simply staying under 183 days does NOT guarantee non-residency
• Common visas: Skilled Worker visa, Family visa, etc. — visa status does not determine tax residence

Residency Rules Explained

• Previously UK resident, but spent fewer than 16 days in the UK this year
• Previously non-resident (prior 3 years), and spend fewer than 46 days in the UK this year
• Working full-time abroad (meeting minimum hours requirement), fewer than 91 days in UK, and fewer than 31 are UK workdays
• Spending 183+ days in the UK in the tax year
• Having a UK home available for 91+ consecutive days and spending 30+ days there (with limits on overseas presence)
• Working full-time in UK for 365 days with no significant breaks
• Family tie: Spouse or children in UK
• Accommodation tie: UK accommodation available and used
• Work tie: 40+ UK workdays in the year
• 90-day tie: Spent 90+ days in UK in either of the two previous years
• Country tie: UK is the country where you spent the most days

Visa vs Tax Residency

Key Dates

• UK tax year: 6 April to 5 April next year (not calendar year)
• Day-count rule: A UK day is counted if you are in the UK at midnight. Up to 60 days can be excluded for exceptional circumstances (e.g., serious illness)
• Split-year treatment: If you move into or out of the UK during a tax year, you may qualify for split-year relief — part of the year treated as non-resident
• Foreign income & gains regime: From 6 April 2025, new rules replace the old remittance basis for non-domiciled individuals

Common Pitfalls

• Assuming 183 days is the only threshold — this is a common misconception that leads to misunderstanding your actual residency status
• Miscounting days (not applying the midnight rule correctly, ignoring transits)
• Ignoring ties — family, accommodation, and work ties can push you into residency even with fewer than 183 days
• Not claiming split-year treatment when moving in/out of UK
• Misunderstanding the new foreign income & gains regime changes from April 2025
• Not keeping adequate records of travel dates, property ownership, work activity, and family location
• Overlooking tie-breaker rules if likely to be dual resident with another country

Offshore & Expat Considerations

• Domicile vs residency: These are separate. You can be UK resident but non-domiciled (important for tax on foreign income)
• Foreign income & gains regime (from April 2025): Non-domiciled individuals may claim relief on foreign income and gains. Rules and eligibility conditions apply — verify current status
• Double taxation & treaties: If also resident in another country, double tax treaty tie-breaker rules apply. The country where you have your permanent home or center of vital interests has priority
• Record keeping: Maintain travel logs, property documents, employment records, utility bills, and a clear timeline to support your SRT position
• Inheritance tax & deemed domicile: If you spend 15+ of the last 20 years in the UK, you may become deemed domiciled for inheritance tax purposes — this expands your tax exposure significantly
• Tie-breaker rules: In some years you may be treated as resident in both UK and another country; treaties determine which country has primary taxing rights