UK expat tax advice: everything you need to know
If you live or work outside the UK for much of the time, you may no longer have to pay as much UK tax. Learn everything you need to know about expat taxes below.
UK expats must track time spent in the UK to determine their tax status.
Non-residents must meet strict rules to avoid most UK tax obligations.
UK income, like rent, may still be taxed even if living abroad.
Double-taxation agreements can help prevent paying tax in two countries.
Being an expatriate - or ‘expat’ - can bring some tax advantages, but it does mean taking extra care and still paying the UK tax you owe.
The amount of UK income tax you have to pay will depend on many different factors, including:
How much time you continue to spend in the UK.
Whether you continue to work in the UK.
How much of your income originates in the UK.
Whether or not your new country has a double-taxation agreement with the UK.
Living abroad can also affect how much capital gains tax you may need to pay on certain assets.
You can continue paying national insurance (NI) contributions if you plan to return to the UK at any point, e.g. to claim the state pension.
However, in the 2025 Autumn Budget, it was announced that class 2 voluntary NI contributions will no longer be available for expats from 6 April 2026. This has made it more expensive for expats to boost their state pension.
Also, if an expat wants to pay voluntary NI contributions from abroad, they'll need a 10-year UK residency or contribution history to do so, from April 2026.
Here’s how to work out the UK tax you may need to pay in various circumstances.
What if I’m working abroad some of the time?
Your tax status will depend on how much time you spend living and working in the UK.
As a guide, you will be considered as a UK resident for tax purposes if you meet the following criteria:
You are in the UK for more than 183 days a year
Your home was in the UK for 91 days (or more) and you were there for at least 30 days
You worked in the UK for any 365 day period (with at least one day in the current tax year)
If you are a UK resident, you’ll need to pay tax in the UK.
This means you’ll need to carefully track how much time you spend in the UK.
What if I’m working abroad permanently?
If you don’t meet these criteria - for example you have left the UK permanently for work - you’ll be classed as a non-resident in the UK and will need to pay tax according to the rules in your new home.
However, if you still receive some income in the UK, such as from rental property, you may still be taxed on it in the UK.
In the 2025 Autumn Budget, it was announced that income tax on UK property will increase by 2% from April 2027 to 22%, 42% and 47% for basic, higher and additional-rate taxpayers.
There will also be a new high-value council tax surcharge (known as the 'mansion tax') that'll apply to properties in England valued at £2 million or more, from April 2028. The surcharge is between £2,500 and £7,500 a year, depending on the property value.
What if I’m retiring abroad?
If you are retiring abroad but still have UK-based pensions, you must decide how to take income from those pensions.
Some people transfer their pension into a qualifying recognised overseas pension scheme (QROPS) to have it paid in their country of residence, which can be simpler and may mean a lower tax bill.
However, there could be unexpected tax charges if your pension is over the Overseas Transfer Allowance (£1,073,100) or you transfer into an unregistered scheme.
This means it's vital to seek advice from a financial adviser specialising in expatriate finances.
Can I be taxed on the same income twice?
Sometimes, you may be asked to pay tax both in the UK and in your new country of residence.
However, if you are living in a country that has a double-taxation agreement with the UK, you can usually claim back some or all of the ‘extra’ tax (depending on the particular agreement).
A financial adviser can tell you more about this.
What if I need financial advice while I’m overseas?
Finding trustworthy financial advice as an expat can be a common problem, especially if you live in an unregulated jurisdiction.
Some UK-based advisers offer specialist international services to expats, but you need to specify what you need when you search via Unbiased.
Get expert expatriate tax advice
Being classed as a UK expat can provide some notable tax advantages, as long as you carefully track your time in the UK and pay any outstanding taxes on time and in full.
The amount of tax you owe in the UK as an expat can vary according to factors like your time spent locally, any work you perform and income you earn in the UK, and double-taxation agreements between the UK and your country of residence.
Unbiased will match you with an experienced financial adviser who can identify your UK expat tax obligations and make it simple to maintain compliance and accurate financial records as an expat.
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