Understanding UK Tax Residence

The Statutory Residence Test (SRT) was introduced in 2013 to provide clarity on tax residence status. The SRT uses a combination of automatic tests and tie-breaker tests to determine residence. Spending 183 days or more in the UK automatically makes you UK resident, but residence can be triggered with far fewer days depending on your UK ties.

Foreign income and gains

From 6 April 2025, the UK introduced a new four-year Foreign Income and Gains (FIG) regime that can simplify taxes for new residents. If you haven’t been UK tax resident in the past 10 years and are now establishing UK residency, you’ll usually qualify. For instance, profits from overseas businesses or rental properties, foreign dividends or interest and capital gains on offshore investments are exempt under FIG. In effect, these overseas earnings won’t be taxed in the UK during your first four tax years of residence, even if you bring the resulting funds into the UK.  The relief does not apply automatically, and a claim will need to be made each year by filing a UK Self Assessment return, reporting your worldwide income, and electing to use FIG relief for the year. Those that claim FIG relief do not qualify for the personal tax-free allowance or the annual capital gains tax exemption, and so in some cases it will not be tax efficient to make the claim.

Since the relief only lasts four years, it’s wise to plan your investments and remittances carefully. From year five onwards, overseas income and gains become taxable in the UK like any other income.

Our UK Arrival Tax Services

We offer a holistic pre-arrival (or pre-return) planning service to set you up for success from day one in the UK. Our services include:
Personalised Pre-Arrival Planning: Guidance on the timing of your arrival and structuring of income and assets beforehand. We’ll advise on the optimal date to become UK resident (for example, aligning with the tax year) and help you consider actions like realising certain gains or income before you land.
Your Bespoke “Residence Rulebook”: A tailored roadmap explaining how UK tax rules (residency, FIG, IHT.) will apply specifically to you and your family. This is designed to give you clarity on what will be taxed in the UK versus what remains outside scope, and will outline any available reliefs and actions to take before key deadlines.
HMRC Registration & First Tax Return: We handle all the formalities of getting you into the UK tax system, registering with HMRC and preparing your first UK Self Assessment tax return. If you qualify for the FIG regime or split-year treatment, we will make the necessary claims to secure your tax benefits.

By planning ahead, you can arrive in the UK confident that your finances are structured tax-efficiently and fully compliant. If you’re moving to the UK, let us guide you through the process. Contact us for a free, no-obligation discussion.