UK Expat Tax Accounting & Advice

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If you live outside the UK but still have income from the UK,  investments or property, you may need to file a UK Self-Assessment return and make decisions about residency, double tax relief, property reporting.

International tax issues and tax matters often require specialised tax advice to ensure compliance and optimise outcomes.

Expert tax advice and tax planning are especially valuable for UK expats, as professional advice can help you navigate complex tax situations and make the most of your cross-border financial position. This guide explains the complexities surrounding cross border tax issues and where a specialist UK expat tax adviser can add value.

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At a glance

  • Do I need a UK tax return? Often yes, if you have UK property income, sold UK property, sizeable investment income, or need to claim reliefs. It is important to understand your tax status, tax obligations, and tax liabilities, as individual circumstances affect whether you need to file UK tax returns. Key deadlines are 31 October for paper submissions and 31 January for online filing following the tax year end.
  • Residency drives everything. Use the Statutory Residence Test to determine if you are UK resident. Your tax status and residency will affect which tax rules and tax rate apply to you. Split year treatment may apply when you move part way through the tax year..
  • As of 6 April 2025, the non dom remittance basis has been replaced by a 4 year Foreign Income and Gains (FIG) regime.  For new arrivals who have been non resident for the previous 10 tax years. Overseas Workday Relief (OWR) continues but links to the FIG regime.
  • Letting out a UK property while non resident? The Non Resident Landlord Scheme unless you obtain NRL1 approval to receive rent gross otherwise tax may withheld at 20%. The self assessment tax return are key processes for compliance.
  • Selling UK property? There is a 60 day reporting and payment rule for disposal of UK residential property and land.
  • Double tax relief with Australia. The UK Australia treaty prevents double taxation. You may need a certificate of residence to claim relief. Seek UK tax advice for navigating tax returns and claiming double tax relief.
  • National Insurance while overseas. You may be able to pay voluntary Class 2 or Class 3 to protect your UK State Pension record, obtain a British State Pension Forecast.
  • Making Tax Digital for Income Tax. From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send quarterly updates.
  • Tax free personal allowance. Depending on your tax status, you may be eligible for the tax free personal allowance. Eligibility is subject to review and may depend on individual circumstances and treaty conditions. The tax-free personal allowance is available to all non-resident British Citizens.

Understanding your tax obligations, tax liabilities, and the relevant tax rules is essential for compliance with UK tax law, especially when dealing with UK self assessment tax, self assessment tax, and UK tax returns.

Do you need to file a UK Self Assessment return from overseas?

You are likely to need Self Assessment if you:

  • receive UK property income
  • sold or gifted UK property or land
  • have untaxed UK income such as certain savings, dividends or partnership profits
  • need to claim reliefs or make complex residency or treaty claims

Non-residents are still liable to pay UK tax on income arising in the UK, such as rental income and income from UK employment.

The requirement to file a self assessment tax return or assessment tax return depends on your specific details and circumstances, including your tax obligations and the nature of your UK tax returns.

Filing deadlines are 31 October (paper) and 31 January (online) following the tax year. Payment is generally due by 31 January with possible payments on account payable 31 January and 31 July by way of instalments.

Forms to know:

  • SA100 main return
  • SA105 UK property income pages
  • SA106 foreign income pages
  • SA109 residence, split year, OWR and domicile pages (for 2025–26)

It is important to seek UK tax advice and expert guidance to ensure all required details are included in your tax returns, to help manage your tax liabilities and remain compliant with your tax obligations.

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Step 1 – Work out your UK residency (SRT)

Residency is determined year by year using the Statutory Residence Test (SRT):

  • Automatic overseas tests
  • Automatic UK tests
  • Sufficient ties test (family, accommodation, work, 90 day, country ties) with day count thresholds

Your residency status and tax status determine whether you are a UK tax resident and directly affect your tax obligations and the tax rate that applies to your income.

HMRC’s Residence and FIG Regime Manual sets out the ties and day limits, and the SA109 Notes explain how to disclose SRT outcomes and split year treatment where appropriate.

If you are classified as a UK tax resident under the SRT, you are generally taxed on your worldwide income, not just UK-sourced income.

Tip: Keep travel records, boarding passes and evidence of homes and work to substantiate SRT day counts and ties.

 

Step 2 – Understand the post April 2025 regime for expats and new arrivals

From 6 April 2025:

  • The remittance basis is abolished.
  • A 4 year Foreign Income and Gains regime offers 100 percent relief on eligible foreign income and gains for new arrivals who were non-residents for the prior 10 tax years.
  • Overseas Workday Relief is retained, now tied to eligibility for the 4 year FIG regime.
  • A Temporary Repatriation Facility allows certain former remittance basis users to bring pre 6 April 2025 foreign income and gains to the UK at a reduced rate for a limited window.
  • Inheritance Tax shifts to a residence based system with a 10 out of 20 years long term residence test.

With these new rules coming into effect, it is crucial for expats and new arrivals to understand the updated UK tax rules and how they may impact your tax situation.

Transitional note: The 2024–25 SA109 still contains remittance basis and OWR disclosures under the old rules. Claims for 2025–26 onwards follow the FIG framework.

Given the complexity of international tax changes, effective tax planning, seeking expert guidance is essential to optimise your tax situation and ensure compliance with all relevant tax rules. Professional advice can help you navigate the evolving landscape of international tax obligations between the UK and other countries.

Renting out UK property while living overseas

Non Resident Landlord Scheme and NRL1. If your usual place of abode is outside the UK, letting agents or tenants must withhold basic rate tax (20%) from rent unless HMRC approves your NRL1 application to receive rent gross. Each joint owner applies separately.

Non-resident landlords receiving UK rental income have specific tax obligations and may need to pay UK tax on their rental income, following the relevant tax rules.

Quick checklist

  • Decide if you need NRL1 approval to receive rent gross
  • Track allowable expenses and capital vs revenue items
  • Record restricted finance costs for the tax credit
  • Consider Class 2 NIC eligibility if you run a property business from abroad
  • File your SA return on time
  • Understand your tax liabilities and follow the correct tax rules for rental income

 

Selling UK property as a resident or non-resident

  • If you sell a UK residential property with CGT to pay, you must report and pay within 60 days of completion. This includes reporting any capital gains and meeting your capital gains tax obligations when selling UK property.
  • If you are non-resident, you must report all disposals of UK land or property, even where there is no tax or a loss, and you must use the dedicated UK Property CGT service. New rules may apply for non-residents, so it is important to understand the relevant tax rules and how double taxation agreements may affect your position. Since April 2015, non-residents must pay Capital Gains Tax on gains from selling UK residential property or land and from April 2020 on non-residential property or land..

Documents to gather: completion statement, dates of acquisition and disposal, valuations, enhancement and selling costs, and evidence for reliefs.

Be aware of your tax liabilities and tax obligations when disposing of UK property, as these can be affected by capital gains, capital gains tax, and the specific tax rules that apply to your situation.

Working in or from the UK while living overseas

  • Overseas Workday Relief continues from April 2025 but links to eligibility for the 4 year FIG regime. Individuals working in or from the UK may still have an obligation to pay UK tax depending on their tax status.
  • If you leave the UK and are no longer in receipt of any UK sourced income, consider submitting form P85 to reconcile PAYE and claim any repayment.

Understanding your tax obligations and tax situation is crucial when working across countries, as different countries have varying tax laws and requirements.

Double tax relief for expats in Australia

The UK–Australia Double Taxation Convention allocates taxing rights on employment income, pensions, interest and more, and prevents double taxation through relief at source or foreign tax credit relief. 

Certificates of residence

  • To claim relief in Australia, you may need a UK certificate of residence from HMRC.
  • To claim relief from UK tax as an Australian resident on certain UK source income, you may need an Australian certificate of residency from the ATO.

Understanding your tax status and seeking expert tax advice is important especially when dealing with double taxation agreements and cross-border tax obligations.

Note: When living or working in Australia and the UK, it is essential to understand your taxes and tax obligations, particularly if you are resident in more than one country or have income in both countries. Double taxation agreements play a key role in managing your tax status and ensuring compliance.

 

National Insurance while you live abroad

You can often protect your UK State Pension record by paying voluntary Class 2 (if working abroad and you meet eligibility conditions) or Class 3 Voluntary contributions.  Eligibility to pay National Insurance may depend on your work status in different countries. 

Class 2 is typically cheaper and protects more benefits than Class 3 if you qualify. Check your qualifying years and eligibility before making contributions.

County snapshots at a glance

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When considering an overseas secondment to Australia you must first give consideration as to what your tax implications are in Australia and the UK being the country you are leaving.

The questions to consider:

  • How long is the secondment for?
  • Is your family to travel with you, or remain behind?
  • Will I remain a tax resident in my country of residence?
  • Will I continue to remain an employee of my current employer?
  • Am I to transfer to the overseas employing office and if so, what are the terms?
  • Will I be an Australian tax resident?
  • What visa am I travelling on and expiry of such visa?
  • Does Australia have a double taxation agreement with my country of residence?

Your tax residency is fundamental to determine who has taxing rights over your worldwide income with particular reference to the salary being offered to you.

As a Tax Resident of Australia you are subject to income tax on your worldwide income.

It is possible to be a dual resident with the UK.  Should this be the case you would need to consider which country has overriding residency which is commonly referred to as treaty residency as it is the conditions set in the double taxation agreement which would determine this deciding point.

Once your residency position has been determined you can better understand who has taxing rights over your income along with your tax reporting obligations in both countries.

If you have left or are leaving the UK partway through the tax year to live or work in Australia, Singapore, Hong Kong or Dubai (UAE) you would need to consider your eligibility for split year treatment which will enable you to split the tax year into 2 parts.

Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.

As a non-UK tax resident you will be required to lodge a UK Tax Return with HM Revenue & Customs if you have:

  • Income from renting out a UK property including your main residence.
  • Income from savings, investments and dividends.
  • Any other UK untaxed income.

You will need to register for self-assessment and lodge a UK Tax Return if not already registered.

If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or have an exemption from UK tax in relation to your UK Pension.

hong kong

If you have left or are leaving the UK partway through the tax year to live or work in Hong Kong, you would need to consider your eligibility for split year treatment which will enable you to split the tax year into 2 parts.

Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.

As a non-UK tax resident you will be required to lodge a UK Tax Return with HM Revenue & Customs if you have:

  • Income from renting out a UK property including your main residence.
  • Income from savings, investments and dividends.
  • Any other UK untaxed income.

You will need to register for self assessment and lodge a UK Tax Return if not already registered.

If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or have an exemption from UK tax in relation to your UK Pension.

dubai

If you have left or are leaving the UK partway through the tax year to live or work in Dubai you would need to consider your eligibility for split year treatment which will enable you to split the tax year into two parts.

Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.

As a non-UK tax resident, you will need to lodge a UK Tax Return with HM Revenue & Customs if you have:

  • Income from renting out a UK property including your main residence.
  • Income from savings, investments and dividends.
  • Any other UK untaxed income.

You will be required to register for self-assessment and lodge a UK Tax Return if not already registered.

If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or have an exemption from UK tax in relation to your UK Pension.

singapore

If you have left or are leaving the UK partway through the tax year to live in Singapore you need to consider your eligibility for split year treatment which will enable you to split the tax year into 2 parts.

Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.

As a non-UK tax resident you will be required to lodge a UK Tax Return with HM Revenue & Customs if you have:

  • Income from renting out a UK property including your main residence.
  • Income from savings, investments and dividends.
  • Any other UK untaxed income.

You will need to register for self-assessment and lodge a UK Tax Return if not already registered.

If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or have an exemption from UK tax in relation to your UK Pension.

Essential admin points from overseas

Registering for Self Assessment (UTR). If you are not self-employed, use form SA1 to register and obtain a UTR before filing. If you are registering due to self-employment, you must provide additional details about your business activities, as your self-employment status affects the registration process and the information required by HMRC.

Appointing an agent.

You can authorise a professional to deal with HMRC via Online Agent Authorisation or form 64 8, depending on the tax. Providing accurate details is essential for authorisation. HMRC is rolling out the digital handshake within the Agent Services Account for more services.

Payments on account

If your bill is high, HMRC may require payments on account for the next year. You can reduce them if appropriate but interest applies if you reduce too far. It is important to understand your tax situation, especially if you have offshore income or assets, as you may need to use the Worldwide Disclosure Facility to ensure compliance with HMRC requirements.

If you cannot pay in full. HMRC’s Time to Pay lets many taxpayers spread the bill into instalments once the return is filed.

Making Tax Digital is coming

From 6 April 2026 landlords and sole traders with qualifying income over £50,000 must keep digital records and send quarterly updates, with later expansion to lower thresholds. 

self assessment tax return on smartphone

Submitting A Self Assessment Tax Return

You are required to file a UK Tax Return should you have the following income

  • Salary earned from working abroad
  • Rental income
  • Dividends, interest, and rental income
  • Income & gains from stock option exercises
  • Taxation of investment income and capital gains
  • Disposal of UK property
  • Principle residence gains and losses

You will need to register for Self Assessment before you can submit a Tax Return to HMRC.

Once you have registered to you file a tax return by using commercial software, paper forms or by using the services of accountants such as GM Tax.

Late Filing Penalties

Failure to lodge your tax return can result in penalties of up to £1,300.

Failure to your taxes on time will result in interest from being charged from the due date of payment.

HMRC will charge daily interest for fines exceeding three months.

The penalty rates are available through the HMRC website.

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Get in touch

UK Expat Tax Accounting & Advice

Speak to our UK tax experts for fixed fee quotes for UK tax advice, UK annual tax returns and Capital Gains Tax returns.

If you are being seconded to Australia and would like a fixed fee proposal from a firm of tax advisors that understands the issues affecting expats living and working overseas please complete our contact us button or by calling a GM Tax office closest to you.

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FAQs

Yes, if you are not resident for UK tax purposes but have UK property income, dispose of UK land, or need to claim reliefs, you must file self-assessment tax returns or an assessment tax return. Non-residents must report all UK land disposals even if there is no tax, and may still have to pay UK tax on UK-sourced income.

SA109 is the residence, split year, OWR and domicile page. You use it when residency or tax status matters to your return, including split year. For 2024–25, OWR and remittance basis entries still appear on SA109.

The remittance basis ended. A 4-year FIG regime now applies for new arrivals meeting the 10 year non residence condition. OWR remains but is linked to FIG eligibility.

Apply to HMRC using NRL1 so rent can be paid gross. You still file SA and pay any tax due.

Set up the UK Property CGT account and submit the return within 60 days of completion if there is tax to pay, or report as required if you are not resident. You may also need to file UK tax returns and provide specific details about the transaction. Seek assistance if required.

Use the UK–Australia Double Taxation Convention plus foreign tax credit relief in your SA return. Double tax treaties are designed to prevent being taxed twice on the same income in both countries. You may need a certificate of residence from HMRC or the ATO depending on where you claim. On occasion the tax offset is not 100%.

Often yes by paying voluntary Class 2 or Class 3 contributions if eligible. Use CF83 and check NI38. Note that UK pensions may be subject to UK tax depending on your tax status and UK tax purposes.

From 6 April 2026 landlords with qualifying income over £50,000 must keep digital records and send quarterly updates. More taxpayers will be brought in later. It is important to understand your tax situation and consider tax planning for compliance.

You may need to file Australian tax returns and understand your taxes in both countries. It is important to be aware of your obligations in both tax jurisdictions. Many Australians living in the UK will need to complete a self-assessment tax return.

Yes, even if you are a non resident, you may still have to pay tax or pay UK tax on UK-sourced income.

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