UK Emigration Tax Considerations Complete Guide 2026/27
Leaving the UK in 2026/27: the Statutory Residence Test, P85, split year treatment, ISAs, pensions, UK property gains and temporary non-residence.
The Statutory Residence Test (SRT)
UK tax residence is determined by the SRT (Schedule 45 Finance Act 2013), summarised in HMRC's RDR3 guidance note:
Automatic overseas tests (non-resident)
- Fewer than 16 days in the UK in the tax year, having been UK resident in 1 or more of the previous 3 tax years
- Fewer than 46 days in the UK, having been UK resident in none of the previous 3 tax years
- Full-time work overseas, with fewer than 91 days in the UK and fewer than 31 days on which you work more than 3 hours in the UK
Automatic UK tests (resident)
- 183 or more days in the UK during the tax year
- A UK home for a period of at least 91 consecutive days (30 in the tax year), with no overseas home or fewer than 30 days spent in one
- Full-time work in the UK over a 365-day period
Sufficient ties test (intermediate cases)
Counts ties to the UK (family, accommodation, work, 90-day and, if you were resident in any of the previous 3 years, country) against days spent in the UK. More ties mean fewer days allowed before you are UK resident.
The exit checklist
- Check your expected status under the SRT for the year you leave and the next
- Tell HMRC: file Form P85, or report the departure on your Self Assessment return
- Claim split year treatment on the Self Assessment residence pages if a case applies
- Give your employer your departure date (they issue a P45)
- Review UK bank accounts and tell providers your new residence
- Tell your ISA provider (you can keep the ISA but not pay in)
- Decide on UK property: sell or let (Non-Resident Landlord scheme)
- Plan your pension position before any transfer (overseas transfer charge)
- Keep records of continuing UK income and assets
- Research the destination country's tax rules and the double taxation agreement
Split year treatment
If you leave partway through a tax year and meet one of the statutory cases, the year is split into a UK part and an overseas part. Departure cases:
- Case 1: starting full-time work overseas
- Case 2: the partner of someone starting full-time work overseas
- Case 3: ceasing to have a home in the UK
- Cases 4 to 8 apply to arrivals in the UK
Tax treatment of common UK assets post-emigration
| Asset | UK tax post-emigration |
|---|---|
| UK rental property | UK Income Tax on the rent (NRL scheme); UK CGT on disposal |
| UK shares (non-property) | Generally no UK CGT while non-resident, unless temporary non-residence (5 years or less) applies |
| UK ISA | Still tax-free in the UK; no new subscriptions; may be taxable in the destination country |
| UK pension | Taxed in the UK unless the double taxation agreement gives the destination country the taxing right |
| UK bank interest | Paid gross; for non-residents UK liability on savings and dividend income is usually limited under ITA 2007 s.811 (disregarded income) |
| UK dividends | No UK withholding tax on ordinary dividends; covered by the same s.811 limit; the destination country may tax them |
Destination country considerations
Always check the destination country's rules and the UK's double taxation agreement with it before you move. Points that commonly matter: whether the new country taxes worldwide income from the day you arrive, how it treats ISAs and UK pension lump sums (both UK reliefs only), whether it has an expatriate or new-resident regime, and whether you are a citizen of a country that taxes on citizenship rather than residence, as the United States does. Specialist cross-border advice is worth paying for before departure, not after.
Related pages
- Digital Nomad UK Tax
- UK Salary Abroad
- Remote Work Tax + Employer Rules
- State Pension Calculator
- UK City vs City Cost-of-Living Comparison - benchmark take-home + rent + Council Tax if you decide to stay or move within UK.
Frequently asked questions
How do I become non-UK resident for tax?
The Statutory Residence Test (SRT) decides. You are automatically non-resident if you spend fewer than 16 days in the UK in the tax year and were UK resident in one or more of the previous 3 years, fewer than 46 days if you were not resident in any of those 3 years, or you work full-time overseas with fewer than 91 days in the UK and fewer than 31 days working more than 3 hours in the UK. Otherwise the automatic UK tests and then the sufficient ties test apply. If you are not sending a Self Assessment return for the year you leave, you can tell HMRC on form P85.
What is split year treatment?
Where you leave the UK partway through a tax year and meet one of the statutory split year cases, the year is split into a UK part and an overseas part, and the overseas part is generally taxed as if you were non-resident. Cases 1 to 3 cover departures (starting full-time work abroad, accompanying a partner who does, ceasing to have a UK home); cases 4 to 8 cover arrivals. Each case has its own conditions, and you claim the treatment on the residence pages of your Self Assessment return.
Do I have to file UK Self Assessment after leaving?
Often, yes, for the year you leave if you were already in Self Assessment or have income to report, and in later years if you have UK income HMRC needs to know about, such as UK rental income or a UK property disposal. Non-residents are generally taxable in the UK only on UK-source income and on gains from UK land and property (plus the temporary non-residence rules for some other gains).
What is the P85 form?
P85 tells HMRC that you have left or are leaving the UK and lets you claim back tax on your UK employment income. HMRC says you do not need to fill it in if you are sending a Self Assessment return for the tax year you leave. You can claim online or on the form, published at gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85.
What about my UK Individual Savings Account (ISA) after emigrating?
You can keep a UK ISA open and it keeps its UK tax relief, but once you are non-UK resident you cannot pay into it (unless you are a Crown employee working overseas, or their spouse or civil partner). Tell your ISA provider when you stop being UK resident. The ISA wrapper is a UK relief only: your new country may tax the income and gains inside it, so check the local rules.
How are UK pensions taxed if I emigrate?
It depends on the double taxation agreement between the UK and your new country of residence. Without treaty relief, UK pension income stays taxable in the UK (after a Personal Allowance if you are eligible for one). Where your new country also taxes it and has a double-taxation agreement with the UK, you claim relief so you are not taxed twice; the agreement decides which country keeps the taxing right, and government service pensions are often treated differently from private ones. Transfers to an overseas pension scheme (QROPS) can trigger the 25% overseas transfer charge unless an exclusion applies, so take regulated advice before transferring.
What about Capital Gains Tax (CGT) on UK assets after leaving?
Non-residents have paid UK CGT on UK residential property since 6 April 2015, and on all UK land and property (including commercial property and certain property-rich holdings) since 6 April 2019. Most other assets, such as shares, are generally outside UK CGT while you are non-resident. The exception is temporary non-residence: if you return within 5 years or less of leaving, gains on assets you held before departure and sold while abroad can be taxed in the year you return.
How does National Insurance work after emigrating?
If you are posted abroad by a UK employer you may keep paying UK National Insurance for a period, depending on the country. Otherwise UK contributions generally stop when you stop working in the UK. You may be able to pay voluntary contributions to fill gaps in your record from abroad; the rules for people living abroad changed from 6 April 2026, so check eligibility on GOV.UK before paying. Social security agreements with some countries can also affect where you pay.
Should I sell my UK home before leaving?
Depends on your plans. If you sell, Private Residence Relief covers the periods it was your main home, plus the final 9 months of ownership. If you keep it and let it, the rent stays taxable in the UK (letting agents or tenants deduct basic-rate tax under the Non-Resident Landlord scheme unless HMRC approves gross payment), and a later sale is within UK CGT. Keeping it and buying another home on return can bring the higher rates of Stamp Duty Land Tax for additional dwellings.
What is the UK exit tax?
The UK has no general exit charge for individuals who emigrate: leaving does not by itself trigger a deemed disposal of your assets. Deemed disposal rules on migration apply to companies and trusts, not to individuals. The main anti-avoidance rule for individuals is temporary non-residence, which brings back into charge certain gains and income realised during an absence of 5 years or less. Take advice if you hold substantial company shares or plan a large disposal around the time you leave.