If you go to live or work abroad and become non-resident in the UK, you might still have to pay UK Income Tax - but only on your income from the UK. If you do need to pay, you may need to complete a Self Assessment tax return.
On this page:
You'll be treated as non-resident from the day after you leave the UK if you can show:
The same applies to your spouse, civil partner or partner.
If you have left or are about to leave the UK you must tell HM Revenue & Customs (HMRC). If you're not required to fill in a tax return, you'll have to complete form P85 Leaving the UK - getting your tax right. HMRC will use the information on the form to send you any tax refund you're owed and work out if you'll become non-resident. It's important you enclose parts 2 and 3 of form P45 if you have one as HMRC will not be able to make any tax refund due without them. You'll need to send the original versions - photocopies won't be accepted.
If you're leaving the UK to work full-time abroad for a UK based employer for at least a complete tax year, you'll need to fill in a tax return as well as a form P85.
If you become non-resident, you won't pay UK tax on your income from working overseas.
If you're non-resident but work partly in the UK, you'll pay UK tax on the part of your earnings allocated to that work. You usually allocate your earnings by looking at the number of days you work in the UK and the number of days you work abroad.
There are special rules for:
Check with HMRC if you're one of these.
If you're non-resident, you'll pay UK tax on your UK pensions - including your State Pension. You may not pay UK tax if the country you live in has a 'double taxation' agreement with the UK.
Wherever you live, you'll usually pay UK tax on a government service or local authority pension. But if you live in Australia, Canada, New Zealand or Cyprus you'll pay tax on it there.
If you're non-resident, the only UK tax you'll usually pay is the tax deducted before you get the interest.
If you're also 'not ordinarily resident' (you normally live outside the UK), you can get your interest without tax deducted by giving form R105 to your bank or building society.
In either case, if tax has been deducted from interest, you might be able to claim a refund against UK tax allowances using form R43.
If you're non-resident, UK tax is still due on your other UK investment income. However, if the country you live in has a double taxation agreement with the UK you may be able to get relief or exemption. But you can never reclaim or reduce the ten per cent tax credit on dividends from UK companies.
UK tax is due on your income from rental property.
If you're non-resident and you get rent from UK property paid directly to you, your tenant must deduct UK tax at the basic rate - currently 20 per cent. If you use a letting agent, they'll deduct the tax from the 'net rent' - after any allowable expenses they've paid.
You can apply to have the rent paid to you without tax deducted if you don't think you'll have to pay any UK tax, or if your tax affairs are up to date. But you'll still need to declare the rent on a Self Assessment tax return if HMRC sends you one.
If the country you live in has a double taxation agreement with the UK you may be able to get relief there for UK tax paid.
If you're non-resident and get overseas income, no UK tax is due. But if it's paid or collected by a UK agent - like a bank - they normally deduct tax at source. You'll need to complete form PA1 or CA1 - available from your agent - to prevent this.
In the tax year when you leave the UK you'll pay UK tax on the smaller of:
If you're a European Economic Area citizen (including British), or a current or former Crown employee, you'll still get your tax-free allowances to reduce the amount of UK Income Tax due. Members of certain other special groups also qualify.
The country you move to may want to tax you on your worldwide income - even if tax is due in the UK. But if it has a double taxation agreement with the UK you won't normally have to pay the same tax twice.
If you are currently paying back a student loan either through your salary or through your tax return you must tell the Student Loans Company before you leave the UK. Follow the link below to find out more.