How do I become non-UK resident for tax?

Statutory Residence Test (SRT) determines residence. Automatic non-resident if: less than 16 days in UK in tax year (if UK resident in 1+ prior 3 years) OR less than 46 days (if not UK resident in prior 3 years) OR work full-time abroad with limited UK time. Otherwise depends on "ties" to UK + days present. Submit P85 to HMRC when leaving.

What is split year treatment?

Where you leave UK partway through tax year, split year treatment can treat you as non-resident from departure date for that year (rather than UK-resident for whole year). 8 specific cases qualify: starting full-time work abroad, accompanying partner abroad, ceasing UK home, etc. Reduces UK tax on post-departure income. Apply via Self Assessment.

Do I have to file UK Self Assessment after leaving?

Yes, in your final year + any year you have UK income (rent, interest, pension, gains on UK property). Final SA filed via online return - must include split year claim if relevant. Subsequent years: only if UK income exceeds reporting thresholds. Non-residents pay UK tax only on UK-sourced income + UK property gains.

What is the P85 form?

HMRC form notifying you are leaving UK. Submit when you stop being UK tax resident or work full-time abroad. Triggers: refund of any tax overpaid in part-year, update of records, potential change to PAYE code. Not legally mandatory but practically essential for clean tax exit. Available at gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85.

What about my UK ISA after emigrating?

Existing ISA stays open + tax-free within UK rules (UK ISA tax shelter does not extend to foreign tax authorities). Cannot contribute to ISA in years you are non-resident. ISA growth/withdrawals continue tax-free in UK. CRITICAL: many foreign tax authorities tax ISA gains/income (no equivalent ISA shelter abroad) - check destination country rules. US treats UK ISA as PFIC - extremely punitive.

How are UK pensions taxed if I emigrate?

Complex - depends on destination country + double tax treaty. UK source income: still taxable in UK at 75% (after 25% PCLS) but Double Tax Treaty may give exclusive taxing rights to country of residence. Common destinations: Spain + Portugal apply favourable rates; US taxes worldwide including UK pensions. QROPS (Qualifying Recognised Overseas Pension Scheme) transfer possible but complex - many countries no longer qualifying.

What about CGT on UK assets after leaving?

Post-April-2019: ALL UK property gains (residential + commercial) subject to UK CGT regardless of residence. Other UK assets (shares, etc.): generally not UK-CGT if disposal during non-resident period. EXCEPT "temporary non-residence" rules - if you return to UK within 5 years of departure, gains realised during absence may be taxed on return.

How does National Insurance work after emigrating?

UK NI stops automatically when no longer UK-employed. Can pay voluntary Class 3 from abroad to maintain State Pension entitlement. Some countries have reciprocal social security agreements (EEA + Switzerland + USA + others) - may credit UK contributions toward host country pension. Check via your local UK consulate or HMRC NICEO.

Should I sell my UK home before leaving?

Depends on country + future plans. Selling pre-departure: full PPR Relief applies (assuming primary residence throughout). Renting: rental income taxable in UK (Non-Resident Landlord scheme), property value still subject to UK CGT on eventual sale. Many emigrants keep UK property as investment - factor 5% SDLT surcharge if buying again on return + 18-24% CGT on disposal.

What is the UK exit tax?

No general "exit tax" for individuals (some countries do have this). However: deemed disposal rules apply to specific assets (e.g. company shares for emigrating directors); "temporary non-residence" anti-avoidance brings back gains realised during short absence. For most emigrants there's no tax due simply on departure. Get advice if you own substantial company shares or complex assets.

Practical guide

UK Emigration Tax Considerations Complete Guide 2026/27

Complete UK emigration tax guide for 2026/27 - Statutory Residence Test, P85 form, split year treatment, pension extraction, ISA + property implications, CGT considerations, double tax treaties.

The Statutory Residence Test (SRT)

UK tax residence determined by SRT (Schedule 45 Finance Act 2013):

Automatic non-resident tests

Less than 16 days in UK in tax year + UK resident in 1+ prior 3 years
Less than 46 days in UK + NOT UK resident in prior 3 years
Full-time work abroad (>35 hrs/week, less than 91 days back in UK)

Automatic UK resident tests

183+ days in UK during tax year
UK home + insufficient overseas home
Full-time UK work

Sufficient ties test (intermediate cases)

Counts ties to UK (family, accommodation, work, 90-day, country) against days in UK. More ties → fewer days allowed before deemed UK resident.

The exit checklist

Confirm non-resident status under SRT
Submit Form P85 to HMRC
Apply for split year treatment via Self Assessment
Notify employer of foreign address (PAYE code may change)
Close UK bank accounts not needed (or convert to non-resident)
Update ISAs (cannot contribute, can keep)
Decide UK property: sell or rent out (Non-Resident Landlord scheme)
Plan pension strategy (continue contributing? transfer to QROPS?)
Notify HMRC of any UK assets/income continuing post-emigration
Research destination country tax obligations

Split year treatment

Where you leave partway through tax year, split year treatment treats you as non-resident from departure date. Qualifying cases (Cases 1-8):

Case 1: Starting full-time work abroad
Case 2: Accompanying spouse/partner who works abroad
Case 3: Ceasing to have UK home
Case 4-8: Various return-to-UK scenarios

Tax treatment of common UK assets post-emigration

Asset	UK tax post-emigration
UK rental property	UK Income Tax via NRL scheme; UK CGT on disposal
UK shares (non-property)	No UK CGT during non-residence (unless temp non-resident under 5 yrs)
UK ISA	Still tax-free in UK; may be taxable in destination country
UK pension	Source-country tax (potential), destination country tax (per DTT)
UK bank interest	No UK tax if non-resident + R85 (or equivalent) filed
UK dividends	UK withholding may apply; reduced by DTT

Common destination country considerations

Always verify destination country rules + Double Tax Treaty before emigration:

USA: Taxes worldwide income for residents + citizens. ISA treated as PFIC (highly punitive). UK pension lump sums often double-taxed. Get specialist advice.
EU (post-Brexit): Visa requirements + each country\'s tax system. Some have favourable expat regimes (Portugal NHR closed to new applicants 2024).
UAE/Dubai: Zero personal income tax for residents. Most popular destination for UK high earners. Establish residence + 183-day rule.
Australia/New Zealand: Both tax worldwide income for residents. DTTs in place.

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?
Statutory Residence Test (SRT) determines residence. Automatic non-resident if: less than 16 days in UK in tax year (if UK resident in 1+ prior 3 years) OR less than 46 days (if not UK resident in prior 3 years) OR work full-time abroad with limited UK time. Otherwise depends on "ties" to UK + days present. Submit P85 to HMRC when leaving.
What is split year treatment?
Where you leave UK partway through tax year, split year treatment can treat you as non-resident from departure date for that year (rather than UK-resident for whole year). 8 specific cases qualify: starting full-time work abroad, accompanying partner abroad, ceasing UK home, etc. Reduces UK tax on post-departure income. Apply via Self Assessment.
Do I have to file UK Self Assessment after leaving?
Yes, in your final year + any year you have UK income (rent, interest, pension, gains on UK property). Final SA filed via online return - must include split year claim if relevant. Subsequent years: only if UK income exceeds reporting thresholds. Non-residents pay UK tax only on UK-sourced income + UK property gains.
What is the P85 form?
HMRC form notifying you are leaving UK. Submit when you stop being UK tax resident or work full-time abroad. Triggers: refund of any tax overpaid in part-year, update of records, potential change to PAYE code. Not legally mandatory but practically essential for clean tax exit. Available at gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85.
What about my UK ISA after emigrating?
Existing ISA stays open + tax-free within UK rules (UK ISA tax shelter does not extend to foreign tax authorities). Cannot contribute to ISA in years you are non-resident. ISA growth/withdrawals continue tax-free in UK. CRITICAL: many foreign tax authorities tax ISA gains/income (no equivalent ISA shelter abroad) - check destination country rules. US treats UK ISA as PFIC - extremely punitive.
How are UK pensions taxed if I emigrate?
Complex - depends on destination country + double tax treaty. UK source income: still taxable in UK at 75% (after 25% PCLS) but Double Tax Treaty may give exclusive taxing rights to country of residence. Common destinations: Spain + Portugal apply favourable rates; US taxes worldwide including UK pensions. QROPS (Qualifying Recognised Overseas Pension Scheme) transfer possible but complex - many countries no longer qualifying.
What about CGT on UK assets after leaving?
Post-April-2019: ALL UK property gains (residential + commercial) subject to UK CGT regardless of residence. Other UK assets (shares, etc.): generally not UK-CGT if disposal during non-resident period. EXCEPT "temporary non-residence" rules - if you return to UK within 5 years of departure, gains realised during absence may be taxed on return.
How does National Insurance work after emigrating?
UK NI stops automatically when no longer UK-employed. Can pay voluntary Class 3 from abroad to maintain State Pension entitlement. Some countries have reciprocal social security agreements (EEA + Switzerland + USA + others) - may credit UK contributions toward host country pension. Check via your local UK consulate or HMRC NICEO.
Should I sell my UK home before leaving?
Depends on country + future plans. Selling pre-departure: full PPR Relief applies (assuming primary residence throughout). Renting: rental income taxable in UK (Non-Resident Landlord scheme), property value still subject to UK CGT on eventual sale. Many emigrants keep UK property as investment - factor 5% SDLT surcharge if buying again on return + 18-24% CGT on disposal.
What is the UK exit tax?
No general "exit tax" for individuals (some countries do have this). However: deemed disposal rules apply to specific assets (e.g. company shares for emigrating directors); "temporary non-residence" anti-avoidance brings back gains realised during short absence. For most emigrants there's no tax due simply on departure. Get advice if you own substantial company shares or complex assets.