Tax residence rules
The UK’s non-dom tax regime was abolished on 6 April 2025.
In its wake, a new system based on tax residence was established that changed how internationally mobile individuals are taxed.
We can help you understand the tax residence rules so you do not get caught out.
UK residence is determined by the Statutory Residence Test (SRT) that will determine where your residence is for tax purposes.
You will be considered a non-UK resident for a tax year if:
- You were resident in one of the past three tax years and you recently spent than 16 days in the UK during the tax year
- You were not resident in any of the past three tax years and spent less than 46 days in the UK during the tax year
- You work full-time overseas and spend less than 91 days in the UK and work less than 31 days in the UK during the tax year
You are considered a UK resident if:
- You spend 183 days or more in the UK
- Your only home is in the UK and has been used for a significant period
- You work full-time in the UK for a specific period
The measures are designed to streamline the tax process and ensure that people who pay tax in the UK do so on a broader range of their assets and incomes.
This has resulted in the previously important remittance basis of taxation no longer applying to foreign income and gains.
Some people coming to the UK may find themselves able to use the four-year foreign income and gains regime to enjoy four years tax-free.
This means surrendering entitlement to the UK personal allowance and Capital Gains Tax (CGT) annual exemption.
The removal of the non-dom tax status is likely to have a significant impact on Inheritance Tax (IHT) and estate planning.
If you want to understand your tax position and how your overseas assets may be treated, speak to our team today!