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UK Non Resident Tax
If you do not usually live in the UK, you may have UK non-resident tax status and be eligible for tax relief on income received in the UK. HMRC rules concerning non-resident tax relief can be very complicated, and each case is considered individually.
To find out more about UK non resident tax relief please follow the links below:
For tax purposes a person is usually classed as having non-resident status if:
- They have lived, or plan to live, outside the UK for at least three years
- They have lived and worked full-time outside the UK for the most recent full tax year
- They have lived outside the UK for the most recent full tax year, with their spouse or civil partner who has worked full-time
and, in each of the above cases:
- During the last four tax years, they have visited the UK, for any reason, for less than 183 days in each tax year, and on average less than 91 days per tax year
A Double Taxation Agreement is an agreement between two governments, designed to make sure that an individual’s income is not taxed excessively. Sometimes this means that tax is paid in only one country, or it may mean that tax is paid at a reduced rate. A Double Taxation Agreement is an important factor when making a UK non resident tax claim.
If you usually live in a country with which the UK has a Double Tax Agreement, and you receive money from UK sources, you may be eligible for full or partial tax relief on that income.
If you are non-resident, most employment earnings from a UK source are eligible for tax relief. Income from UK property rental, pensions, savings interest, annuities and trusts held in the UK are all also usually eligible.
To apply for non-resident tax relief it is common for you to have to obtain a certificate from the relevant authority or tax office in the country where you are resident. This certificate should confirm how long you have been resident for tax purposes there. HMRC will consider each claim for non-resident tax relief on an individual basis, and you may be required to provide further details of your personal circumstances.
It is usually necessary to complete a Self Assessment tax return for every year that you wish to claim non-resident status. In a few exceptional cases HMRC may write stating that you do not need to do this.
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