Residency Assessments

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Expert guidance on the Statutory Residence Test and HMRC residency rules

Tax residency is a very complex area of tax which can be intricate and highly fact-specific; UK Tax Returns specialises in navigating this niche with clarity and confidence. Determining your UK tax residency is a foundational step in assessing an individual’s liability to UK tax assessment on income or gains.

Having your tax residency status determined accurately is critical because UK residents are generally taxable on their worldwide income and gains, and by comparison meeting criteria to be taxed as a Non-Resident can have many tax advantages from the UK tax perspective.

DID YOU KNOW – you can spend as few as 16 days in the UK and be regarded as a UK tax resident? It is a very common misconception that you are able to spend 182 days here before residency becomes a factor, but this is far from true as the day count is just one small aspect of residency legislation.

Residency Considerations

Internationally Mobile Employees

Being part of the global workforce often creates complex UK tax residency and cross-border tax issues. Frequent travel and overseas work can change your status under the Statutory Residence Test and trigger UK tax obligations for worldwide income. Understanding how foreign tax credits, HMRC reporting, and non-resident rules apply is essential to managing your UK tax position effectively.

Tax-Free Allowances

While you are UK tax resident you are entitled to the UK personal tax-free allowance, regardless of your nationality. However, once you leave the UK and become non-resident, your entitlement to this allowance may change depending on your citizenship, visa status, and your new country of residence. Understanding your entitlement is essential for compliance with HMRC rules.

Split Year Treatment

In some circumstances, a tax year can be divided into a UK-resident part and a non-resident part. This is known as Split Year Treatment and applies when you meet specific conditions upon either arriving in or leaving the UK. If you qualify, applying split year treatment is mandatory. The assessment will establish the precise date your UK tax residency starts or ends, and dictate how your worldwide income is taxed for the relevant year.

Double Taxation Agreements (DTAs)

The UK has one of the largest DTA networks in the world, and these agreements determine which country has taxing rights over many classes of income. You may have to declare the same income in more than one country, but DTAs can provide tax credits or exemptions, but the rules can be complex and vary by country.

What our clients say

Our clients consistently rate us highly on Trustpilot, praising our clear advice, responsive service, and personable approach. Our reviews reflect our commitment to delivering exceptional UK tax support that you can trust.

Trustpoilot

Always Helpful With Non-Resident Landlord Returns

I am a non-resident landlord and UK Tax Returns have always been so helpful in preparing my tax returns for the past few years.

Tara, (Ireland)

Invaluable Help Navigating a Complicated Situation

The help and guidance I received from Kelly was invaluable. As a non-resident, Kelly helped me navigate a complicated situation with patience, and solid advice, all at a reasonable price, which resulted in the best possible outcome for me. Without her help I wouldn't have known where to begin. I couldn't have asked for more.

Kirsty (USA)
Tricky Non-Resident Return Handled Easily

I have nothing but good things to say about the service I received from Jose. What I thought may have been a tricky return due to my status as a non-resident and the complications around tax credits was easily handled by his service.

Russell (Australia)

Frequently Asked For Questions Double Taxation Agreements

How long can I spend in the UK before I am treated as a UK tax resident?
Once I become a non-resident, how long will that treatment last for?
If I am treated as a non-resident, what sources of income become UK tax exempt?
Can I be tax resident in more than one country?

Why Use A Tax Advisor?

UK Tax Returns assist clients with complex residency issues daily and no two set of circumstances are identical. We can consult on your specific personal circumstances to advise on the tax parameters so that you can understand at what point you will become either UK tax resident or Non-Resident, and how your UK or Worldwide income will be treated for tax going forward.

We are fully versed on a wide range of tax issues, and we will ensure the correct residency determination is made. If you are planning any significant life changes that might involve moving to the UK or overseas, it is of vital importance to consider your tax position before making any big decisions such as selling property or other investments.

Contact us today to speak with an expert adviser and get clarity on your UK residency or non-residency position.