Living or working in the UK and wondering, “Am I a UK Tax Resident?” This question often arises if you travel often or have income from more than one country.
Your residency status determines how HMRC taxes your income, whether it is earned in the UK or overseas. The rules are set out in the Statutory Residence Test (SRT) which determines your tax residency based on the days you have spent in the UK and your personal and professional ties here.
In this article, we will guide you on what it means to be a tax resident in the UK, and whether you qualify for it or not, as well as its tax implications.
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What is Meant By a UK Tax Resident?
An individual who meets any one of the requirements of the Statutory Residence Test is considered a UK Tax Resident. It is the framework that helps determine tax residency in the UK.
Being a resident in the UK generally means you pay tax on your worldwide income and capital gains. Non-residents, however, are only taxed on income earned within the UK.
Do I Qualify as a UK Tax Resident?
The UK uses the Statutory Residence Test (SRT) to decide if you are a UK tax resident for a given tax year. The decision is based on:
- How many days you spend in the UK.
- The strength of your connections (or “ties”) to the UK.
- Whether you work full-time abroad.
The tests must be checked in a specific order. Once you meet the criteria for a particular test, you can stop, as your residency status will have been determined.
Automatic Overseas Tests
If you meet any of these tests, you are automatically not a UK tax resident for the tax year:
- You were a UK resident for one or more of the last three tax years and you spend fewer than 16 days in the UK this year.
- You were not a UK resident in any of the last three tax years and you spend fewer than 46 days in the UK this year.
- You work full-time abroad for the whole tax year and spend fewer than 91 days in the UK, with fewer than 31 days in the UK on which you work for more than 3 hours.
Automatic UK Tests
If none of the Automatic Overseas Tests apply to you, check the following. If you meet any of these, you are automatically a UK tax resident:
- You spend 183 days or more in the UK in the tax year.
- You have a home in the UK that is available to use for at least 91 consecutive days, you use it for at least 30 days in the year, and you spend less time in any overseas home.
- You work full-time in the UK for a continuous 365-day period (with no significant break), and more than 75% of your total work days in that period are in the UK. At least one of those work days must be in the tax year you are testing.
Sufficient Ties Test
If your status is still not determined by the automatic tests, HMRC looks at how many UK connections (“ties”) you have. The more ties you have, the fewer days you can spend in the UK before becoming a resident.
The ties considered include:
- Family tie: Having a close family member (spouse, partner, or minor child) who is a UK resident.
- Accommodation tie: Having a place to live in the UK that is available for at least 91 days in the tax year and you spend at least one night there. This includes accommodation belonging to a close relative if you stay there for 16 or more nights.
- Work tie: Working in the UK for at least 40 days in the tax year (a day of work is more than 3 hours).
- 90-day tie: Spending more than 90 days in the UK in either of the previous two tax years.
- Country tie: (Applies to “leavers” only) Being in the UK for the greatest number of days in the tax year compared to any other single country.
Quick rule of thumb
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What Are The Tax Implications Of Being a UK Resident vs. Non-Resident?
If you’re a UK resident, you pay UK tax on all your income, no matter where in the world you earn it. If you’re a non-resident, you only pay UK tax on income you earn from things located in the UK.
Let’s look at the key differences in how the two types of taxpayers are treated.
If you’re a UK Resident…
The UK tax system considers you a global taxpayer. This means:
- Worldwide Income is Taxable: The UK government taxes all your income and gains, no matter where they come from. This includes your salary, rental income from a property in another country, and profits from investments you hold anywhere in the world.
- You Get a Personal Allowance: You’re entitled to the UK’s tax-free personal allowance, which for the 2025/26 tax year is £12,570. This reduces your taxable income.
- You Pay Tax on Worldwide Gains: If you sell an asset like a second property or some shares and make a profit, you’ll likely have to pay Capital Gains Tax on it, even if the asset is located outside the UK.
- Double Tax Relief: If you’ve already paid tax on your foreign income in another country, the UK has rules to make sure you’re not taxed on the same money twice.
If you’re a Non-UK Resident…
The UK tax system is much more focused. The general rule is:
- Only UK-Sourced Income is Taxable: You only pay UK tax on money that comes from the UK. This includes income from a UK rental property, a UK pension, or work you’ve done while physically in the UK.
- Foreign Income is Not Taxed: You don’t have to pay UK tax on any money you earn from a job or an investment in another country.
- Possible Personal Allowance: You might still be able to claim a personal allowance, but it often depends on your nationality or a tax agreement the UK has with your country.
- Limited Capital Gains Tax: You generally do not pay UK Capital Gains Tax (CGT) on gains from other UK assets, such as shares in a UK company, unless the company is ‘property-rich’ or the temporary non-residence rules apply.
What are the Common Mistakes That People Make About Tax Residency?
The following are some of the most common mistakes that people make about UK tax residency:
- Assuming non-residency based solely on days spent overseas without considering UK ties.
- Not following the Statutory Residence Test’s (SRT) stated order.
- Confusing the distinct concepts of domicile and residence.
- Misunderstanding how the reforms to the non-domicile regime will affect tax liability on worldwide income.
- Neglecting to claim double taxation relief when income is taxable in both the UK and another country.
- Failing to keep accurate and detailed records to support your tax status.
How Employment Affects Your UK Tax Residency?
Your tax residency in the UK is affected based on your employment factors.
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Working Full-time Overseas
Working full-time overseas can lead to automatic non-UK residency under certain conditions.
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Working in the UK
Working full-time in the UK can result in automatic UK residency. Additionally, working for at least 40 days in the UK can create a work tie for the Sufficient Ties Test.
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Split-Year Treatment
Moving to or from the UK for full-time work midway through the tax year may qualify you for split-year treatment, which divides the tax year into resident and non-resident periods for tax purposes.
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Overseas Workday Relief (OWR)
Beginning April 6, 2025, the UK’s new Overseas Workday Relief (OWR) allows “qualifying new residents” to claim tax relief on foreign earnings for their first four tax years. This replaces the previous non-domicile (“non-dom”) tax rules.
Am I a UK Tax Resident If I’m a Foreign Student?
The UK’s tax system treats foreign students the same as any other individual under the Statutory Residence Test (SRT). Your visa status does not grant a special tax exemption
| Condition | Outcome | Why? |
| Length of Course | Likely UK Resident | A full-time academic year typically involves spending 183 days or more in the UK. This automatically triggers UK tax residency under the Automatic UK Tests. |
| Accommodation | Adds a ‘Tie’ | Living in university accommodation or renting a student flat in the UK counts as having an “available home.” This is a strong Sufficient Tie that makes it much easier to become a tax resident, even if your total days are slightly under 183. |
| Tax Impact | Taxed on Worldwide Income | Once you are a UK resident, you are liable to pay UK tax on all your income and gains globally. However, students can claim the UK Personal Allowance (£12,570 for 2024/25), meaning most student part-time earnings remain tax-free. |
What Tax Considerations Should Be Kept In Mind When Moving to the UK?
Following tax considerations should be kept in mind, when are moving to the UK:
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Worldwide Income And Gains
UK residents are often taxed on their worldwide earnings and gains.. However, special rules apply to “qualifying new residents” (those not resident in the UK for at least 10 consecutive years).
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New Foreign Income and Gains (FIG) Regime
Beginning April 6, 2025, the UK’s new Overseas Workday Relief (OWR) allows “qualifying new residents” to claim tax relief on foreign earnings for their first four tax years. This replaces the previous non-domicile (“non-dom”) tax rules.
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Split-Year Treatment
In the year you arrive in the UK, you may be eligible for split-year treatment, taxing you as a UK resident only for part of the year.
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Inheritance Tax (IHT)
From April 6, 2025, UK inheritance tax is based on residency. Becoming a “long-term UK resident” (resident for at least ten of the previous twenty years) makes your overseas assets taxable to UK IHT. A potential 10-year “tail” period may apply after leaving the UK.
Can You Be a Tax Resident in 2 Countries?
It is possible to be a tax resident in two countries under their domestic laws. The UK has double taxable agreements (DTAs) with several nations to prevent double taxation on the same income.
- DTAs workings: DTAs use “tie-breaker” clauses to decide which country has the major taxing rights. This makes you a “treaty-resident of that country for DTA’s purposes.
- Tie-breaker rules: These rules have a hierarchy, considering factors like permanent home, centre of vital interests, habitual abode, and nationality to establish treaty residency.
- Claiming relief: If you are a dual resident, you may need to claim relief under a DTA via self-assessment or potentially claim “unilateral relief” if no DTA exists.
How Do I Get a Tax Residency Certificate?
If you are a UK resident with overseas income and wish to claim tax relief under a Double Taxation Agreement, you must first get a CoR (Certificate of Residence).
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Confirm Your Eligibility
You must be a UK resident based on the SRT, be up-to-date with your UK tax, and have a relevant double taxation agreement with the country in question.
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Apply Online
Individuals and sole traders can apply quickest online through their Government Gateway account. You can also apply via email using an HMRC form.
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Gather Required Information
You’ll need to provide details such as the tax year, your contact information, National Insurance Number, UTR (if applicable), days spent in the UK, the reason for the certificate, the country requiring it, and information about the foreign income and relevant double taxation agreement.
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Submit The Application
Submit your application online via Government Gateway or by email to HMRC. Processing time can vary, but they usually take several weeks.
Bottom Line
It is necessary to know whether you qualify as a tax resident in the UK or not. It helps manage your tax responsibilities and avoid costly mistakes.
Even though the Statutory Residence Test provides a clear framework, it can get tricky if you travel frequently or have income from multiple countries.
Knowing where you stand as a tax resident in the UK, helps ensure whether you are paying the right amount of tax, and stay compliant with HMRC.
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Disclaimer: All the information provided in this article on UK Tax Resident, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.