Taxes and living abroad

If you work overseas, or spend a lot of time abroad, you may benefit from financial advice to help reduce the amount of tax you pay in the UK.

An expatriate (or expat), is someone who temporarily or permanently lives in a country other than that of their upbringing.  If you fall into this category, you could take advantage of the differences in taxation that exist in the country where you’re staying. But it’s important to make sure you also pay any tax due in the UK.

For expat tax purposes, a lot depends on how much time you spend out of the country.  If you weren’t born in the country that you’re living in, or you don’t consider it to be your permanent home, then you could be considered to be a ‘non-domicile’ resident.  If a non-domiciled UK resident is employed by a non-UK resident employer and performs all of their duties outside of the UK, the income arising is only subject to UK tax if and when it is received or remitted to the UK.

As you can see, expat taxes aren’t straightforward!  They’re a bit more complicated than the ‘domestic’ taxes that most people have to pay.  

So if you’re paying tax on overseas income, it’s a good idea to get advice on your tax position from a financial adviser.  Expatriate tax advice is a specialist area, so it’s also best to choose a financial adviser who’s aware of the tax legislation in the country you’re living.  Find a financial adviser here.

Questions you might like to ask a financial adviser…

  • Do I need to pay taxes in the UK, on income earned abroad?
  • How can I be sure I’m not paying too much tax in the country where I’m living?
  • Are my investments liable to taxation if I bring them back into the UK?