Many British expats assume living in Dubai means leaving UK tax behind. This guide explains how UK tax residency really works, how HMRC applies the Statutory Residence Test, and the mistakes that often catch expats out years later.
If you’ve been living overseas for years, there may come a time when you start thinking about returning home. This guide explains why expats return to the UK, the most common financial and tax traps to watch out for, and what smart planning can achieve.
TL;DR
The new UK tax rules for people moving back from overseas change how your foreign income, pensions, and tax residency are treated. These rules affect when and how you pay tax on overseas earnings, whether you qualify for UK personal allowances, and how your global income is reported. Understanding the timing of your return and residency status is crucial to avoid unexpected UK tax bills.
Returning to the UK?
…
UK residency is determined based on a combination of factors and the application of the Statutory Residence Test (SRT). Here is an explanation of how it works.
For British expats moving or living abroad, there are many traps and pitfalls in the UK’s complex tax regime to be aware of. Based on my experience, these are the top five tax mistakes, assumptions and statements that are made, and how to avoid making them.
