UK Non-Residents:
If you meet any of the following criteria, you will automatically not be considered a UK resident for the tax year:
Ties to the UK for Residency Determination:
Accommodation Ties:
You have an accommodation tie if you lived in the UK continuously for more than 91 days during the tax year and spent at least one night in your own home or at least 16 nights in a close relative’s home during the tax year.
Employment Ties:
Work ties apply to individuals who work more than three hours a day for more than 40 days in one tax year.
A 90-Day Tie:
A 90-day tie applies if you spent more than 90 days in the UK during the previous two tax years.
Tie to a Country (only if you were a resident in the UK in previous tax years):
A country tie occurs if you were present in the UK at midnight more days than any other country in the tax year.
Residency Status When Automatic Tests Aren’t Met:
If the automatic tests aren’t met, and you don’t have enough ties, you may be treated as not resident in the UK for that tax year. Seeking professional help is recommended to determine your residency status.
Year of Leaving or Returning:
You can claim split-year treatment for income tax purposes if you leave or come to the UK permanently or meet certain conditions. All income and capital gains earned before departure and after return are added to your UK income for the non-resident period.
Taxation for UK Residents and UK Non-Residents:
UK Resident Taxation:
Tax on all worldwide income and capital gains. Special rules apply for non-domiciled individuals.
UK Non-Resident Taxation:
Generally taxed only on income received in the UK. Certain income may be taxed in your country of residence due to double tax treaties.
Income From Property for UK Residents and UK Non-Residents:
UK property income is usually taxed in the UK, regardless of residence. Non-resident landlords may need to complete Form NRL1 to receive UK rental income gross.
Taxation of Other Income for UK Residents and UK Non-Residents:
Taxation depends on the Double Tax Treaty with your country of residence.
Income Tax Refund when Leaving for UK Residents and UK Non-Residents:
You may have overpaid income tax if you’ve worked in the UK. Form P85 can be used to claim a refund. National Insurance contributions cannot be refunded.
Capital Gains Tax for UK Residents and UK Non-Residents:
There may be Capital Gains Tax liability on the disposal of residential or commercial property. You must report and pay tax within 60 days of the property sale. Consult local tax advisers for country-specific requirements.
