I’m a British expat and no longer live in the UK, however I have to occasionally return home. How long do I have to be outside of the UK to avoid paying tax in the UK?
The amount of tax you are required to pay in the UK will depend on your UK tax residence status, as, in general, non-residents of the UK are generally only taxed on UK source income.
Your UK tax residence status is established through the Statutory Residence Test which incorporates a number of tests and factors when establishing whether you are a UK tax resident or not.
The Statutory Residence Test sets out a series of rules which determine if you are automatically non-resident or automatically resident.
For example, if you spend 183 or more days in the UK in any given tax year you will automatically be considered as a UK tax resident.
However, it is not conversely true that if you spend fewer than 183 days in the UK, you will automatically be classed as a UK non-resident.
If you are neither automatically resident or non-resident, other factors, classed as “ties” will also need to be taken into consideration.
A combination of your ties and the time you spend in the UK will ultimately determine your UK tax residence status.
We have created a comprehensive guide to the Statutory Residence Test which will give you an overview of the various tests, ties and time requirements which will establish your UK tax residence status.
However, this should not be used in isolation to help you determine your tax residence status and UK tax exposure, you should always seek qualified advice to ensure you know your tax requirements.
FAQs
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.
What is the 90 day rule for UK taxes? ›
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).
Do I need to pay tax in the UK if I live abroad? ›
You usually have to pay tax on your UK income even if you're not a UK resident. Income includes things like: pension. rental income.
How long can I stay in the UK before paying tax? ›
Broadly they are as follows: You spend 183 days or more in the UK in the tax year under consideration. You have a home in the UK for a period of more than 90 days, and you are present in the home on at least 30 separate days (note there are further conditions in relation to this test which you should also consider).
What is the 5 year rule for taxes in the UK? ›
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.
How many days outside UK do you have to avoid 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.
Can I get all my tax back if I leave 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.
What happens if I stay out of UK for more than 6 months? ›
You might not be able to get settled status if you spent more than 6 months outside the UK within any 12-month period. There are some exceptions to this. You might still be able to get settled status if you were outside the UK for up to 12 months for: an 'important reason' - for example, pregnancy or study.
What is the 120 day tax rule UK? ›
The more days an individual spends in the United Kingdom, the fewer UK ties are needed for them to pass the sufficient ties test and be UK resident. This ranges from one tie if they spend more than 120 days in the United Kingdom to four ties if they spend fewer than 46 days in the United Kingdom.
What is the 7 year tax rule UK? ›
The 7 year rule
No tax is due on any gifts you give if you live for 7 years after giving them - unless the gift is part of a trust. This is known as the 7 year rule.
Most people stop paying National Insurance contributions after reaching State Pension age. If you're self-employed, your Class 2 National Insurance contributions will no longer be treated as paid. You stop paying Class 4 National Insurance from 6 April (start of the tax year) after you reach State Pension age.
What is the 60 day rule for taxes in the UK? ›
Since 6 April 2020, all UK residents must file and pay capital gains tax on disposal of residential property within 60 days (increased from 30 days if the completion date was on or after 27 October 2021) following the completion day for UK land (including buildings) when there is a charge to capital gains tax.
What is the 183 day rule? ›
How Many Days Can You Be in the U.S. Without Paying Taxes? The IRS considers you a U.S. resident if you were physically present in the U.S. on at least 31 days of the current year and 183 days during a three-year period. The three-year period consists of the current year and the prior two years.
How does the UK 90 day rule work? ›
Your total stay in the Schengen area must be no more than 90 days in every 180 days. It does not matter how many countries you visit.
How many days can UK expats spend in the UK and retain non resident status? ›
46 Days - If you spend less than 46 days in the UK in any year, you will maintain your non resident status (provided you have not been classed as a UK resident for the previous 3 tax years. If you have had non resident status for less than this, you must spend less than 16 days in the UK).
What is the 90 day tax law? ›
90-Day Letter is an IRS notice stating that there was a discrepancy or error within an individual's taxes and they will be assessed unless petitioned. The taxpayer has 90 days to respond, otherwise the audit deficiencies will result in reassessment. Also known as a Notice of Deficiency.
What counts as a day for UK tax residency? ›
The end of day (midnight) is used to count the days. Eg. An individual arrives in the UK on 10 June and depart on 12 June.
