There are many reasons why individuals may decide to spend time in the UK; a lifestyle choice, for work or for other personal circumstances.

Before you start spending time in the UK, it is important to be aware that the time you spend there, and the activities you undertake whilst you are in the UK, can impact your residence position. In turn, this can impact how you are taxed.

You may wish to spend time in the UK but remain non-UK tax resident, or you may want to become UK tax resident. Either way, it is best to understand the rules (see below for further detail), so that you do not accidentally become UK resident for tax purposes.

If you have previously been UK resident and are considering returning to the UK after a period of non-residence, there are additional specific matters to be aware of.

A new regime for arrivers to the UK

Major changes to UK tax rules were introduced from 6 April 2025 which impact a wide range of individuals. The changes abolished the historic remittance basis regime (applicable to non UK domiciled individuals) and introduced a residence based test for determining liability to UK tax. Read more about the changing rules for non-doms here.

Statutory Residence Test

Your residence position in the UK is determined by the Statutory Residence Test (SRT). The SRT comprises three parts: an automatic non-resident test, an automatic resident test and a sufficient ties test. The tests should be considered in that order but as soon as the conditions of one test are met, the other tests do not need to be considered.

Under the ‘sufficient ties’ test your residence position can be determined by the number of connections you have to the UK (also known as ‘ties’) against the number of days you have spent in the UK in a tax year. Your position must be looked at based on your personal circumstances, so detailed records must be kept to prove your residence position.

The connections (under the ‘sufficient ties’ test) that are relevant are work, family, accommodation, spending more than 90 days in the UK in the prior tax year and spending more time in the UK than any other country.

Click here for our practical guide to the Statutory Residency Test (SRT)

The flow chart is an overview only and does not cover all the intricacies of the SRT – you should always get personal tax advice based on your specific circumstances.

You are considered non-resident for a tax year if you are in the UK for fewer than a specified number of days during that year. Each day is counted based on your presence in the UK at midnight. The limits are as follows:

  1. If you were resident in the UK for one or more of the preceding three tax years the limit is 15 days
  2. If you were resident in the UK for none of the preceding three tax years the limit is 45 days
  3. If you work abroad ‘full-time’ throughout the tax year (broadly, 35 hours per week on average), without a significant break (more than 30 days, with exceptions for annual, sick or parenting leave), the limit 90 days. In this case you must also have less than 31 days in the tax year on which you do more than three hours’ work in the UK.

 

Days of presence will be disregarded if you spend a day in transit, or if you spend a day in the UK due to circumstances beyond your control.

A Court of Appeal decision in favour of the taxpayer concerning what constitutes ‘exceptional circumstances’ has made this rule broader but also less certain as to when it can be applied.

If none of the three tests above are met, the automatic resident tests must be considered.

You will be conclusively regarded as resident in the UK in a tax year if:

  1. You are present in the UK for 183 days or more in that year, or;
  2. You have a home in the UK for 91 consecutive days or more (where at least 30 days of that period fall within the tax year in question), and are present there for some time on at least 30 days in the tax year, and during that 91 day period either have no home overseas, or have one or more such homes but are present for fewer than 30 days at each of those homes in the tax year, or;
  3. You work full-time in the UK for a period of at least 365 days, all or part of which falls within the year, without a significant break. More than three quarters of the days in the 365 day period when you work for more than three hours must be days where you work in the UK.

 

If none of the automatic resident tests are satisfied, the sufficient ties test must then be considered.

The sufficient ties test combines the concept of UK ties with the number of days that you are present in the UK. There are many situational complexities to each of the five UK ties but, in outline, the ties are:

  1. Family tie – you have a spouse, civil partner, unmarried partner or minor child resident in the UK. Children will not be taken into account if you see the child in the UK on fewer than 61 days in the year, or if the child is only resident because they are in full-time education in the UK and they spend less than 21 days in the UK outside term time.
  2. Accommodation tie – you have accommodation in the UK that is available to be used for a continuous period of at least 91 days in a tax year, and you spend at least one night there in the year. If the accommodation is the home of a close relative the ‘one night’ test is extended to 16 nights. This tie does not require you to own the accommodation so holiday homes and even hotels may trigger this tie.
  3. Work tie – you work in the UK for 40 or more days in a tax year, for at least three hours per day.
  4. 90-day tie – you have been present in the UK for more than 90 days in either of the previous two tax years.
  5. Country tie – you are present in the UK at midnight in the tax year as much as (or more than) you are present in any other single country. This tie applies to ‘leavers’ only (see below).

 

The more ties you have the less time you may spend in the UK if you want to be regarded as non-resident. Please note that the table below only applies when you are an ‘arriver’ (meaning an individual who was not UK resident in any of the previous three tax years). Separate rules apply to individuals who have recently been resident in the UK aka 'leavers'.

Arrivers - Days spent in UK
Number of ties that are sufficient for residence

Fewer than 46 days

Always non-resident

46 – 90 days

Resident if four ties

91 – 120 days

Resident if three or more ties

121 – 182 days

Resident if two or more ties

183 days or more

Always resident

Residence status is determined for a complete tax year. However, if your circumstances fit one of the specific cases for split-year treatment to apply, then a tax year can be split into a resident period and a non-resident period. These rules are even more complicated, so you should take expert advice based on your circumstances.

Anti-avoidance provisions apply to prevent individuals leaving the UK for a short period to realise substantial amounts of income or capital gains. You must be non-resident for a specified period otherwise you will be taxed on certain types of income and capital gains in the year you return to the UK. Read more about the temporary non-residence rules.

UK tax residence certificate

You may need a UK tax residence certificate from HMRC to provide to the tax authorities of another country where you are liable to tax.

If you have paid tax on your foreign income in the UK, then you may need to obtain a certificate of UK residence to be able to claim tax relief in the other country.

If you have already paid tax in the other country, then you may be able to get a refund from the tax authorities there.

Tax considerations when moving to the UK

We have listed below some of the UK tax considerations when coming to live in the UK. You will need to take bespoke advice that takes into account any commercial or investment factors. The tax position in your home jurisdiction must also be considered.

  • Ensuring your assets pass in line with your wishes

    It is advisable to understand how UK inheritance tax (IHT) will apply to your assets.

    As part of the changes to the tax treatment for UK resident non-domiciled individuals, there has also been significant changes made to the operation of IHT. Your exposure to IHT may continue once you leave the UK after a period of UK residence. Read more about IHT here.

  • Managing your non-UK business operations

    Your status could impact the residence position of a non-UK company, which affects how business profits and distributions from the company are taxed. Read more about corporate residence.

    You should also consider how any employment duties will be treated- find out more about being a non-resident director.

    If you are investing in a UK business there are numerous issues to consider – find out more about Business Investment Relief.

  • Acquiring UK residential property

    There are several tax implications and legal issues to consider when purchasing UK residential property. We can make sure that you are compliant with your UK tax obligations, advise and assist on matters including finance and loans, managing the purchase process and coordinating with other advisors such as lawyers, property agents and banks. Find out more about non-residents holding UK property.

  • UK reporting obligations

    There are time limits for registering with HMRC and notifying them about your personal and business matters that should be adhered to – make sure you get professional advice to avoid accidental liabilities or penalties.

 

Our International Private Client Services

If you are considering moving to the UK, becoming tax resident or starting a business in the UK, our team can help.

As trusted advisers to entrepreneurs and owner managed businesses, our Private Client specialists across our international network have vast experience in looking after the tax affairs of wealthy individuals, their families and their businesses. Our services include:

Wealth and Asset Protection - Advice on the use of trusts and other entities in structuring global wealth including the tax efficiency of Wills.

International Tax - Co-ordinating and advising on the different tax regimes between countries.

Tax Residence - Advice and practical guidance on moving to the UK and other countries.

Family Business Advisory - We work with multi-generational businesses all over the world with diverse cultures and in diverse sectors.

UK Tax Residency Advice

As outlined above, the UK tax residence rules are complicated - if you are trying to assess your potential residence status, you should seek expert advice - please get in touch with your usual BDO contact, Paul Ayres, Richard Montague or Lee Bijoux.

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