Non-Resident Tax: A Complete UK Guide

If you leave the UK or live abroad but retain UK income or property, understanding the non-resident tax rules is essential. HMRC applies a detailed statutory residence test (SRT) to determine your tax status, and the consequences of being treated as resident or non-resident can be significant for your income tax, capital gains tax (CGT), and inheritance tax (IHT) position.

The Statutory Residence Test

The SRT was introduced on 6 April 2013 to replace the old ordinary residence concept. It has three parts: the automatic overseas test, the automatic UK test, and the sufficient ties test. You start with the automatic overseas test: if you meet it, you are non-resident. If not, you move to the automatic UK test. If neither applies, the sufficient ties test determines your residence status based on the number of ties you have to the UK and the days you spend here.

The 183-Day Rule

The most straightforward rule is that you are automatically UK resident if you spend 183 days or more in the UK in a tax year (6 April to 5 April). This is part of the automatic UK test. Conversely, you are automatically non-resident if you spend fewer than 16 days in the UK in the tax year (or fewer than 46 days if you have not been UK resident for the previous three tax years).

The 90-Day Average Tie-Breaker

If neither automatic test applies, the sufficient ties test looks at how many UK ties you have: family, accommodation, work, and presence in the UK. The maximum number of days you can spend before becoming resident depends on how many of these ties apply. For example, if you have three ties to the UK, you can spend up to 90 days before becoming resident. The test uses a 90-day average over the four preceding tax years rather than a simple annual count.

Split Year Treatment

In the tax year you leave or arrive in the UK, the split year treatment may apply. This divides the tax year into a UK-resident part and a non-resident part, so you are only taxed on UK-source income for the non-resident period and on worldwide income for the resident period. Eight qualifying cases exist, including starting full-time work overseas and leaving the UK to live abroad permanently. Each case has specific conditions and time windows that must be met.

Non-Resident Capital Gains Tax on UK Property

Since 6 April 2015, non-residents have been liable to CGT on disposals of UK residential property. This was extended to all UK property (commercial and residential) from 6 April 2019. The charge applies to both direct disposals and disposals of property-rich entities (those where 75% or more of the value derives from UK land). The CGT rates for non-residents match those for residents: 18% and 24% for residential property (from 2025/26) and 10% and 20% for other assets.

You must report the disposal to HMRC within 30 days of completion and pay the tax due within the same window. The 30-day reporting requirement applies to both resident and non-resident property disposals from 27 October 2021.

Non-Resident Landlord Scheme (NRL)

If you live abroad for six months or more and receive UK rental income, the non-resident landlord scheme requires your tenant or letting agent to deduct basic rate income tax (20%) from your rental income before paying it to you. You can apply to HMRC to receive your rental income gross (without deduction) if your UK tax affairs are up to date and you have no history of non-compliance. The application is made on form NRL1.

Even if you receive rent gross, you must still report the income through a self assessment return each year. Expenses such as letting agent fees, repairs, insurance, and mortgage interest (restricted to basic rate relief) can be deducted from the rental income before tax is calculated.

Practical Considerations

Leaving the UK requires careful planning. You need to consider not only the SRT but also the temporary non-residence rules for capital gains (the five-year rule), your domicile status for IHT, and your access to the remittance basis. Professional advice is strongly recommended before making a significant move, especially if you have substantial UK assets or investments.

HMRC may challenge your claimed non-residence if your ties to the UK remain strong. Keep detailed records of your travel, accommodation, work patterns, and family visits. The burden of proof is on you to demonstrate that you meet the non-residence tests.

Use our residence status calculator to check your position, or explore the links below for more detailed guidance on specific aspects of non-resident taxation.

Browse more UK international tax and cross-border guides or try our calculators.