Do UK expats have to pay tax?
I am a British national living abroad, or a UK expat, do I have to pay tax on my income and other financial assets?
There is often a belief that once you become an expat, no tax is due in the UK. However, this is often not the case and will depend on your own personal circumstances. In many cases tax can be due in both the UK and also your country of residence depending on where you earn your income and where your financial assets reside.
In all cases, the amount of tax that is owed in the UK and/or your country of residence will depend on where you are classed as a tax resident. In the UK, your residence status is established through the Statutory Residence Test and other countries will have different rules which will need to be established.
It is possible to live in another country, but also be considered a tax resident of the UK.
There may also be tax treaties between the UK and your country of residence which will establish what tax is owed to which Government and should help you avoid overpaying tax.
For example, if you live abroad, but earn an income from a rental property in the UK, that income is arising in the UK and is therefore subject to the UK tax rules.
This is just the tip of the iceberg when it comes to whether you need to pay tax as a UK expat.
As expat tax will invariably be a complicated matter with many factors to be taken into consideration, you should always seek advice from a qualified professional who has specialist expertise in non-resident matters. Failure to do so could result in overpayment of tax as well as significant penalties which could easily be avoided by seeking the right advice.
If you would like a free consultation to establish your tax situation, enter your details using the form on this page and we will arrange for a qualified expert from our network to contact you and set up a suitable time to speak.
Request a free expat tax consultation (click to show form)
Enter your details using the form to request a free initial tax consultation to help you establish what tax you may be required to pay