Becoming non resident for tax purposes

UK residence and tax

UK Non-residents do not pay UK tax on their foreign income only on UK income. This can potentially save individuals money depending on where they are resident.

Residents will typically pay UK tax on all income, be it foreign or domestic.

Work out your residence status

UK residency is normally based on how many days you are in the UK in a tax year.

If both of the following apply you are considered UK resident:

• you meet one or more of the automatic UK tests or the sufficient ties test

• you do not meet any of the automatic overseas tests

If both of these do not apply to you then you will be non-resident in the UK for tax purposes.

UK tests

You may be resident under the automatic UK tests if:

• you spent 183 or more days in the UK in the tax year

• your only home was in the UK for 91 days or more in a row - and you visited or stayed in it for at least 30 days of the tax year

• you worked full-time in the UK for any period of 365 days and at least one day of that period was in the tax year you’re checking

You may also be resident under the sufficient ties test if you spent a number of days in the UK and you have additional ties to the UK, like work or family.

Overseas tests

You’re usually non-resident if either:

• you spent fewer than 16 days in the UK (or 46 days if you have not been a UK resident for the 3 previous tax years)

• you worked abroad full-time (averaging at least 35 hours a week), and spent fewer than 91 days in the UK, of which no more than 30 were spent working

If you do not meet any of the automatic tests then the Statutory Residence Test is used to determine your UK residence status for a tax year.

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