Moving abroad does not automatically end your UK tax obligations. Whether you are a digital nomad, an expat on assignment, or permanently relocating, you need to understand the Statutory Residence Test and how UK-source income is taxed when you are overseas.
The Statutory Residence Test (SRT)
The SRT determines whether you are a UK tax resident for a given year. It considers three tests in order:
- Automatic overseas test: you are non-resident if you spend fewer than 16 days in the UK (or 46 days if not resident in any of the previous 3 years)
- Automatic UK test: you are resident if you spend 183+ days in the UK
- Sufficient ties test: if neither automatic test applies, a combination of UK ties (family, accommodation, work, 90-day presence) and days spent determines your status
What happens if you are non-resident?
As a non-resident, you are only taxed on UK-source income:
- UK employment income (work performed in the UK)
- UK rental income
- UK pension income
- UK interest and dividends (usually covered by allowances)
Income earned entirely overseas (e.g. working remotely for a foreign employer) is generally not subject to UK tax if you are non-resident.
Split-year treatment
In the year you leave (or return), you may qualify for split-year treatment — meaning only the UK portion of the year counts as resident. This avoids being taxed on worldwide income for the full year in which you move.
Double taxation agreements
The UK has tax treaties with over 130 countries. These determine which country has the right to tax specific types of income and prevent you from paying tax twice on the same earnings. Always check the treaty with your destination country.
National Insurance while abroad
NI rules are separate from tax residence. If you work in the EEA or a country with a social security agreement, you may continue paying UK NI for a period. Otherwise, you can make voluntary Class 3 contributions to protect your State Pension entitlement.
Coming back to the UK
When you return, you become UK tax resident again and are taxed on worldwide income. There are anti-avoidance rules (temporary non-residence) that can tax gains made while abroad if you return within 5 years.
Check your UK tax position
If you still have UK income, use the income tax calculator to estimate the tax on that portion. For rental income specifically, see our landlord tax guide.