There are many reasons why you may wish to spend time in the UK; lifestyle, family or work.

Before you spend time in the UK, it is important to be aware that what you do and how long you spend in the UK can impact your tax residence position and 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. For tax purposes the date your residence begins, and ends is defined by the UK’s Statutory Residence Test (SRT).

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. These temporary non-residency anti-avoidance rules were widened in the 2025 Budget.

A new regime for arrivers to the UK

A new income and capital gains tax regime was introduced from 6 April 2025) for new arrivers to the UK. New arrivers are individuals who have been non-UK resident for more than 10 years. This replaced the historic remittance basis of taxation in the UK. Read more about the changing rules for non-doms here.

The UK inheritance tax (IHT) rules also changed from 6 April 2025 to be based on an individual’s residence status. Now individuals who have been resident in the UK for more than 10 years will have a continued exposure to UK IHT on non-UK assets following departure from the UK. This exposure will depend on the length of time they were UK tax resident. Read more about IHT and protecting your family’s assets.

Statutory Residence Test

Your residence position in the UK is determined by the UK’s 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, or ties, you have to the UK against the number of days you have spent in the UK in a tax year. You should keep detailed records to support your residence position. The more connections you have to the UK then the fewer number of days you may spend in the UK before you would be considered a UK resident. The connections 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 guide provides an overview only and does not cover all the intricacies of the SRT. We always suggest getting personal tax advice based on your specific circumstances.

The automatic overseas test

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’ (about 35 hours per week) throughout the tax year, without a significant break of more than 30 days, with exceptions for annual, sick or parenting leave, the limit is 90 days. In this case you must also have fewer 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 the UK due to circumstances beyond your control or when it is a day spent in transit. 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.


The automatic resident test

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
  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
  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

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:

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.

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.

Work tie

You work in the UK for 40 or more days in a tax year, for at least three hours per day.

90-day tie 

You have been present in the UK for more than 90 days in either of the previous two tax years.

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'.

Split year treatment

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.

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.

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. We would be delighted to help you on this. Please email Paul Ayres, Richard Montague or Lee Bijoux or get in touch your BDO contact.

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.

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