Jetting off for a life abroad (usually somewhere warmer than the UK!) can be an extremely exciting time in people’s lives. Unfortunately, there are important tax implications that all too often get deprioritised amongst the excitement. Many don’t know that moving abroad doesn’t automatically make you exempt from UK tax obligations. Income, assets, and property based in the UK may still be taxable, which is why planning for this can prevent accidental residency or double taxation.
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A key thing to consider when moving abroad is the SRT. This test determines whether you are or aren’t a UK resident for tax purposes. It calculates this by considering days spent in the UK, family and property ties, and work patterns. The SRT is reviewed once a year, and getting it wrong can trigger significant unexpected tax bills.
Our tax team will help with all areas of becoming an expat, keeping you compliant and allowing you to jet off to pastures new with peace of mind. We’ll notify HMRC of your leaving the UK, planning asset disposals before departure, and help to meet your UK tax reporting requirements.
You usually have to pay tax on your UK income, classed as pension, rental income, savings, and wages, even if you don’t permanently reside here. You may be eligible for a Personal Allowance, which allows you to keep that and pay income tax on the income above that level.
Yes, but support to make sure this doesn’t happen is strongly advised. The country in which you live might also tax you on your UK income, and if a double-taxation agreement exists between said country and the UK, you may be able to claim tax relief in either country to avoid being taxed twice.
You do not need to notify HMRC that you’re leaving the UK if you’re going on a holiday or a short business trip. However, you do need to notify them of your new residential address, and you may also need to file a UK self-assessment tax return if you’re leaving the UK to live overseas. Our team at WR Partners can help notify HMRC and ensure everything is in order.
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