Non-Resident Tax UK

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If you are considered to be a non-resident with UK income (e.g. rentals, pensions) understanding your tax obligations is key to avoiding penalties.

With 2025 changes scrapping the non-dom regime, now’s the time to get compliant. From April 2025, individuals who have been UK tax residents for four years or more will be required to pay UK tax on worldwide income, regardless of where it is kept.

At GM Tax we specialise in AU-UK expat tax, get a fixed-fee quote today.

Determining Your UK Tax Residency Status

We start by considering whether you spent 183 days or more in the UK during any one tax year. If you spend 183+ days in the UK during any one tax year you are automatically considered to be a resident and do not need to consider further tests. The SRT consists of three parts: automatic overseas tests, automatic resident tests, and sufficient ties tests.

Determining your tax residence is fundamental and key for tax purposes as it affects your UK tax obligations and how your income is reported.

Otherwise, apply the Statutory Residence Test (SRT) automatic tests first, then ties. The SRT is the test used by HMRC to determine your residence position for UK tax purposes.

When considering the sufficient ties test your personal circumstances and UK residence status will affect how many days you can spend in the UK before becoming a resident.

Automatic Overseas Tests (to Confirm Non-Residency)

If you meet one, you’re a non-resident.

First

You were resident in the UK for one or more of the previous three tax years and you spent fewer than 16 days in the UK in the tax year. This test considers your status in previous tax years and whether you were a non UK resident during that period.

Second

You were not resident in the UK for any of the three preceding tax years (i.e. you were a non UK resident in those previous tax years) and you spend fewer than 46 days in the UK in the tax year.

Third

You work full time overseas throughout the tax year without any “significant breaks” and:

  • You spend fewer than 91 days in the UK in the tax year
  • The number of days in the tax year on which you work for more than three hours in the UK is fewer than 31

This test looks at the number of days spent working in the UK versus overseas.

Automatic UK Tests (To Confirm Residency)

First

Spend 183+ days in the UK.

Second

You’ll be a UK resident if you have a home in the UK for 91+ consecutive days (at least 30 in tax year) with no overseas home (or present <30 days there). If multiple UK homes, assess each.

Third

Full-time UK work over 365 days (75%+ days working >3 hours in UK).

Sufficient Ties Test (If Automatic Tests Don’t Apply)

If you do not meet any of the above tests use the sufficient ties test. Consider ties like family, accommodation, work, 90-day, or country (for prior residents). The more ties, the fewer days you can spend in the UK before residency.

Case Prior Residency Status Ties Max UK Days Before Resident
1 Not resident in last 3 years 1 182
2 Not resident in last 3 years 2 120
3 Not resident in last 3 years 3 90
4 Not resident in last 3 years 4 45
5 Resident in last 3 years 1 120
6 Resident in last 3 years 2 90
7 Resident in last 3 years 3 45
8 Resident in last 3 years 4 15
self assessment tax return

Split-Year Treatment

If considered a tax resident for the whole year, you may split the tax year into 2 parts, a UK and an Overseas parts. 

For departing part way through a tax year, check cases 1-4; for arriving part way through a tax year check cases 5-8. Speak to our expat advisory team for details and to check your eligibility for split year treatment..

What UK Tax Do Non-Residents Pay?

Non-residents are taxed only on UK-sourced income: salary from UK work, rental income, dividends/interest, stock option gains, investment income/capital gains, UK property disposals.

There is no UK tax on foreign income but 2025 non-dom changes tax worldwide income for long-term residents (get advice if affected).

Key Income Types

  • Salary on UK sourced work.
  • Rental: 20% deducted at source via Non-Resident Landlord Scheme or self-assess.
  • Dividends/interest.
  • Stock options.
  • Property disposals: Disposals of UK assets, such as property, are subject to capital gains tax for non-residents (CGT up to 28%, report within 60 days).

UK Tax Rates and Allowances for Non-Residents (2025/26)

UK tax rates are the same for non-residents and tax residents. Here are the rates after the standard Personal Allowance of £12,570. You don’t get a Personal Allowance on income over £125,140.

Income Band Rate
£0 – £12,570 Personal allowance 0%
£12,571 – £50,270 Basic Rate 20%
£50,271 – £125,140 Higher Rate 40%
£125,140+ Additional Rate 45%

Allowances

Allowances 2025/26
Personal Allowance £12,570
Marriage Allowance £1,127
Blind Person’s Allowance £3,130
Rent a room relief £7,500
Trading Income £1,000
Property Income £1,000

£60,000 a year – ‘annual allowance’ 2025/2026

Your annual allowance will be reduced if your adjusted income for the tax year is more than the adjusted income limit.

Pension Contributions & Tax Relief

You can claim tax relief on private pension contributions up to 100% of your earnings. Relief is automatic if the employer deducts pre-tax or 20% via the provider. UK relief also for overseas schemes up to UK-taxed earnings.

Tax Year Threshold Income Limit Adjusted Income Limit Minimum tapered annual allowance
2025/2026 £200,000 £260,000 £10,000

Migrant Member Relief: Available if you contributed pre-UK move, got relief and scheme is a QOPS inform scheme manager.

Transitional Corresponding Relief: Continue claiming if you received contributions to the same overseas scheme between 6 April 2005 and 5 April 2006; your scheme manager must report benefit crystallisation events (e.g., taking benefits or transfers) to HMRC for ongoing relief. For more, see UK pension advice.

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How to File Your UK Non-Resident Tax Return

Non-resident filing obligations arise if you have UK-sourced income like rentals, dividends or property gains.

  1. Determine need: UK income > allowances; forms SA100 + SA109 for non-residency.
  2. Gather docs: UTR number required; income proofs. Ensure your tax affairs are up to date with HMRC before submitting your return.
  3. Deadlines: Paper by Oct 31, online by Jan 31 through an accountant.
  4. Submission: Post paper or electronic.
  5. Payments: Bank transfer or HMRC online.

Common Mistakes to Avoid

  • Confusing departure/arrival dates with residency effective dates.
  • Not claiming foreign tax credits under double taxation agreements.
  • Forgetting to declare UK property while abroad.

Additional Tax Reliefs

As a non-resident with UK income, claiming eligible tax reliefs can significantly lower your bill whether through deductions for expenses, allowances for couples, or boosts for charitable giving.

We’ve outlined the key options below to help you maximise your savings.

Pension Contributions

Claim relief on up to 100% of your UK-taxed earnings, with automatic application via employers or providers at the basic rate (20%). Higher/additional rate relief claimed via self assessment.

Charitable Donations

Use gift aid to let charities reclaim basic rate tax (25% boost on your donation); if you’re a higher-rate taxpayer on UK income, claim extra relief via your tax return.

Work or Business Expenses

  • Self-employed: Deduct specific running costs (e.g., office supplies, travel) from your UK taxable profits.
  • Employed: Claim for job-essential expenses paid out-of-pocket, like travel or required tools/equipment.

Marriage or Civil Partnership Allowances:

  • Marriage Allowance: Transfer £1,260 of your Personal Allowance to your partner if your income is below £12,570, reducing their tax by up to £252 (2025/26 rates).
  • Married Couple’s Allowance: If unclaimed and either partner born before 6 April 1935, claim up to £1,108 reduction at 10% (minimum £428).

At GM Tax, we specialise in helping expats like you claim these reliefs seamlessly, let us prepare and lodge your returns electronically to ensure nothing’s missed.

Claiming Refunds & Avoiding Double Tax

Use the R43 form for refunds in scenarios such as overpaid tax or mid-year departure.

  • Claim foreign tax paid: The UK has over 120 double taxation treaties, including with Australia.
  • Expenses: Self-employed business costs; employed travel/items essential for job.
  • If married/civil partnership: Claim Marriage Allowance if income < Personal Allowance; or Married Couple’s if born pre-1935.

 

Penalties for Non-Compliance

Staying compliant with HMRC is crucial for non-residents, penalties can escalate quickly and add unnecessary stress to your UK tax obligations.

  • Late Filing Penalties (Self Assessment Tax Return): Initial £100 fixed penalty (even if no tax is due); after 3 months, £10 per day up to a maximum of £900; after 6 months, an additional 5% of tax due or £300 (whichever is higher); after 12 months, another 5% or £300.
  • Late Payment Penalties: Interest charged at 7.75% (as of July 2025) on unpaid amounts from the due date; plus 5% of unpaid tax at 30 days overdue, another 5% at 6 months, and 5% at 12 months.

For full details on rates and appeals, check the HMRC website. Don’t risk it… let GM Tax handle your filing to keep things smooth and penalty-free.

 

2025 Non-Dom Changes

From 6 April 2025, the UK has abolished the remittance basis for non-domiciled (non-dom) individuals, replacing it with a new residence-based Foreign Income and Gains (FIG) regime. New UK residents (those not resident in the prior 10 years) can opt into a 4-year relief period, paying no UK tax on foreign income and gains unless brought into the UK.

For existing non-doms, transitional measures include a 50% reduction on foreign income taxed in 2025/26, asset rebasing to 5 April 2019 values for CGT, and a Temporary Repatriation Facility (TRF) at a reduced 12% rate for 3 years on pre-2025 foreign income remitted to the UK.

Inheritance Tax (IHT) now applies to worldwide assets after 10 years of UK residency, regardless of domicile.

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Get in touch

UK Non-Resident Tax Return Services​

We at GM Tax provide fixed fee quotes for advisory work and tax returns.

  • A Non-Resident Tax Return
  • A Capital Gains Tax Return

If you are leaving the UK and would like a fixed fee proposal from a firm of UK & Australian tax advisors that understands the issues affecting individuals leaving the UK please complete our online enquiry via our contact us button or by calling a GM Tax office closest to you.

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FAQs

Yes, if you are in receipt of UK sourced income.

You can either use an accountant like GM Tax to assist you or you can prepare a paper tax return and post it to HMRC by 31st October.

To file a UK Tax Return you will need a UTR number.

You can arrange to buy via bank transfer or you can pay online via HMRC website. Full details on how to make payment can be found on the HMRC website.

No, you will pay tax in the country to which you are a tax resident with a foreign tax credit claimed for tax paid in the country to which you are a non resident by virtue of the double taxation agreement between each of the countries, commonly referred to as the double tax treaty

Yes, if you have departed the UK partway through the tax year or you have simply overpaid tax.

Yes, by completing the non residency schedules that accompany the UK Self Assessment Tax Return.

The HMRC website is not suitable for non-residents. Instead, you should fill out the Self Assessment Tax return and submit the SA109 form via the mail, or use an accountant like GM Tax who can assist you.

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