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Tax when retiring abroad or back in the UK

If you decide to retire and have your main home abroad so that you become non-resident in the UK, you might still have to pay UK tax - but only on your income from the UK. If you return to retire (or work) in the UK after living or retiring abroad as a non-resident, you'll need to let us know so that we can make sure you pay the right tax.

Paying the right tax if you retire abroad

If you're retiring abroad it's very important to get in touch with us. We will work out:

  • your UK residency status
  • your tax liability in the UK
  • whether you'll need to fill in a Self Assessment tax return
  • whether you are owed a tax refund

Your Tax Office will give you form P85 to get any tax refund you're owed. If you leave the country part way through the tax year, we take this into account.

You can read the detail about tax when leaving the UK in our related guide below.

Tax when leaving the UK

Go to form P85

Contact your Tax Office

Paying the right tax if you retire in the UK after living abroad

If you return to retire or work in the UK after living or retiring abroad as a non-resident, you'll need to let us know about your changed circumstances so that we can make sure you pay the right tax.

Key things to do in advance:

  • tell us when you'll be coming back, and find out about your tax liability on returning to the UK by contacting HM Revenue & Customs (HMRC) by writing to: CAR Residency (Nottingham), Fitz Roy House, PO Box 46, Nottingham NG2 1BD, or by phoning +44 (0)151 210 2222 (the line is open 7.30 am to 5.00 pm, Monday to Friday)
  • check with the country you are living in about any tax you may owe before you leave

You may also want to get in touch with The Pension Service regarding your pension and benefits, to give them details of your return move and your contact details abroad and in the UK.

Contact The Pension Service

The UK tax you'll pay depends on whether you're resident, ordinarily resident and domiciled in the UK. The UK has double taxation agreements with many other countries to make sure that you don't pay tax twice on the same income or gain. If you return to the UK part way through the tax year we take this into account. You can find out more details about all these issues by following the links below.

You can find out more about tax when returning to live in the UK in our guide below.

Tax when returning to the UK

More useful links

Do you have to pay tax in retirement?

Moving back to the UK checklist on the Directgov website

Self Assessment for non-residents

HMRC Residency

Frequently asked questions on tax for non-residents

The Pension Service website - International Pension Centre

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