If you live or work overseas, then your UK tax status will be affected. We offer a wide range of services for expatriates and help them to ensure they are compliant with tax legislation in the UK.

This can be very complex depending on your circumstances so we keep up to date with what you need to do and when so we can advise you in a timely manner.

Some areas that you need to consider if you are planning to live or work abroad are shared in this article.

Residence and domicile status

Your UK tax commitments are dependent on your residence and domicile status. For tax purposes, we need to be clear about what your status is as described below. You can also carry out the Statutory Residence Test, more information about this is shown in this link.

Residence - This depends on several factors including how much time you spend in the UK in any given year and how many ‘ties’ you have in the UK.

Domicile - this relates to the country where you have your permanent home usually you are assigned a domicile at birth however you may have changed your domicile status at some stage so we need to confirm this with you.

Personal allowance

If you are an Expat, you do still have access to the tax-free personal allowance. The personal allowance is currently £12,570. The Chancellor announced in the March 2021 Budget that the personal allowance will be frozen at £12,570 for the tax years 2022/23 to 2025/26.

There is a reduction in the personal allowance for those with ‘adjusted net income’ over £100,000. The reduction is £1 for every £2 of income above £100,000. So, there is no personal allowance where adjusted net income exceeds £125,140.

Capital Gain tax

You must pay tax on gains you make on property and land in the UK even if you’re a non-resident for tax purposes. You do not pay Capital Gains Tax on other UK assets, for example, shares in UK companies, unless you return to the UK within 5 years of leaving.

The current CGT rate is 10%, to the extent that any income tax basic rate band is available, and 20% thereafter. Higher rates of 18% and 28% apply for certain gains, mainly chargeable gains on residential properties, except for any element that qualifies for Private Residence Relief.

If you are planning to live or work abroad then contact us for a more detailed discussion and guidance on how to manage your finances so that you are compliant with UK tax rules as well as making sure you take full advantage of any opportunities for tax relief. You can call us on 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.