UK Tax Residency When Moving Abroad: SRT Explained

The Statutory Residence Test in plain English

Since April 2013, UK tax residency is determined by the Statutory Residence Test (SRT). It applies in three stages: automatic overseas tests, automatic UK tests and the sufficient ties test. You work through them in order — pass any automatic test and the result is settled.

The most relevant automatic overseas test for leavers is the 'less than 16 days in the UK' test, available if you were UK resident in one or more of the previous three tax years. Fewer than 16 days means automatically non-resident for the year. There is also a full-time work overseas test with stricter criteria around hours and trips back.

The sufficient ties test

If no automatic test applies, the sufficient ties test counts your UK ties: family tie (spouse or minor child UK-resident), accommodation tie (a home available 91+ days), work tie (40+ days working in the UK), 90-day tie (90+ UK days in either of the previous two years), and country tie (more days in UK than any other single country). Each tie raises the day-count threshold for non-residency.

For a leaver in their first year out, the typical thresholds are: 0 ties = up to 182 days, 1 tie = up to 120 days, 2 ties = up to 90 days, 3 ties = up to 45 days, 4+ ties = up to 15 days. Track every UK day you spend, including arrival and departure days (any day you are in the UK at midnight counts).

Split-year treatment

Without split-year treatment, your residency status applies to the whole UK tax year (6 April to 5 April). That means leaving in October could leave you UK-resident on overseas earnings from October to April. Split-year treatment, where you qualify, splits the year into a UK part and an overseas part.

There are five split-year cases for leavers. The most common is Case 1: starting full-time work overseas. Case 3 covers ceasing to have a home in the UK. Each case has detailed conditions — meeting them gets you a clean line on your departure date for income, capital gains and most other UK tax purposes.

What still has UK tax exposure

Even as a non-resident, you remain liable for UK tax on UK-source income: UK rental income, UK pension income, UK employment days actually worked in the UK, and gains on UK residential property (Non-Resident CGT applies regardless of residency).

Inheritance tax follows domicile, not residence. UK domicile is much harder to lose than residency — typically requiring permanent settlement abroad with no intention to return for many years. Until you lose UK domicile, your worldwide estate remains within UK IHT scope.

Double taxation agreements

The UK has DTAs with about 130 countries. They allocate taxing rights and prevent the same income being taxed twice. In a typical year you will pay tax in your new country of residence and either credit that tax against UK liability (if any) or claim relief at source on UK-source income such as pensions.

Submit an HMRC P85 when you leave to confirm departure and apply for any tax refund due. If you have UK rental property, register for the Non-Resident Landlord Scheme so rent comes to you gross of withholding tax. A specialist accountant for the year of departure typically pays for itself.

Frequently asked questions