UK Expat Financial Planning

UK tax residency is decided by the SRT — a day-count and ties test. Get this wrong and HMRC can tax your worldwide income for a year you thought you were 'out'.

• •Automatic non-resident: fewer than 16 days in the UK if resident in one of the prior three tax years (46 if not).
• •Automatic resident: 183+ days in the UK in the tax year, or your only home is in the UK.
• •Sufficient-ties test: 16–182 days requires counting up to 5 ties (family, accommodation, work, 90-day, country) to determine residency.
• •Split-year treatment can apply in the year you leave or return — file a P85 with HMRC.

The historic non-dom / remittance basis regime was abolished on 6 April 2025 and replaced by a 4-year Foreign Income and Gains (FIG) regime for new arrivals.

• •New UK residents (non-resident for the prior 10 years) get 4 years of 100% relief on foreign income and gains — even if remitted to the UK.
• •After year 4, worldwide income becomes UK-taxable on the arising basis.
• •Existing non-doms face transitional rules: 12% tax on rebasing foreign-held assets and a Temporary Repatriation Facility for pre-6-April 2025 offshore income.
• •Inheritance tax is now based on residence, not domicile — 10 out of 20 years UK-resident pulls worldwide assets into UK IHT scope.

The Lifetime Allowance was scrapped in April 2024, but new tax-free lump-sum caps replaced it. Cross-border pension moves need care.

• •Keep a UK SIPP if you might return — you can still take 25% tax-free (capped at £268,275) and drawdown is treaty-friendly in most countries.
• •QROPS (Qualifying Recognised Overseas Pension Scheme) transfers now carry a 25% Overseas Transfer Charge unless you and the QROPS are in the same country (or both in the EEA/Gibraltar as of April 2024).
• •Voluntary Class 2 or Class 3 NI top-ups are cheap ways to preserve UK State Pension entitlement while abroad — file form CF83.

The UK wrappers you loved often become tax traps once you leave.

• •You can keep an ISA open once non-resident but cannot contribute. The wrapper is not recognized in most foreign countries — dividends and gains may be locally taxable each year.
• •UK property: rental income remains UK-taxable via the Non-Resident Landlord Scheme. Capital gains on UK residential property are taxed even for non-residents (report within 60 days).
• •CGT on non-UK assets: pay attention to 'temporary non-residence' — if you're out less than 5 years, gains realised abroad can be pulled back into UK CGT on return.