If you have not resided in UK for any of the previous three tax years, you do not become UK resident if you spend fewer than 46 days in the UK in the current tax year.
If you work full-time overseas (at least 35 hours p/w) and spend less than 91 days in the UK without significant breaks from overseas work, you will not be UK resident. Up to 30 days working in the UK is allowed in this rule.
If you came to the UK for the first time after the 5 April 2016, you will become UK resident if you spend 183 days or more in the UK during the tax year. You will also become UK resident if you come to the UK to work full-time (at least 75% of work days are in the UK). If you stay at a UK home for at least 30 days in the tax year, you will become UK resident if during this time:
If your circumstances do not fit with the above scenarios, you will become UK resident if you acquire ‘ties’ with the UK and spend more than 45 days in the UK during the tax year. If you spend 46-90 days in the UK you will be resident if you have all four ‘ties’ listed below. For 91–120 days, UK residence status will apply if there are three ties. For 121-182 days two ties are required.
This applies if your spouse, civil partner (unless legally separated), common law spouse or infant child is UK resident. If the infant child is in the UK simply for full-time education and does not spend more than 20 days in the UK outside term time this will not constitute a family tie.
If you work in the UK for at least 40 days in the tax year for more than 3 hours a day, this constitutes a work tie.
This applies where you have a place to live in the UK available to you for a period of 91 days or more and you spend at least one night there. It is not necessary for you to own the property, a reserved hotel room can constitute an accommodation tie.
This applies if you have spent at least 91 days in the UK in either or both of the previous two tax years.
If you arrived in the UK after 5 April 2016 and became UK resident, you are liable to income tax on all sources of UK income during a tax year.
UK residents who are non-domiciled are eligible for the ‘remittance basis of taxation’ whereby you only pay UK tax on foreign income and gains brought into the UK, e.g. transferred to a UK bank account. Any gains on the disposal of UK assets are liable to CGT.
However, since April 2017 those with UK resident status for at least 15 out of the last 20 years are deemed long-term UK resident and UK domiciled for tax purposes, i.e. liable to UK taxes on all income and gains as they arise.
Note: If the remittance basis is claimed, there is no entitlement to income tax personal allowance and capital gains tax (CGT) annual exemption.
Non-UK residents are liable to CGT on gains from the sale of UK residential property on or after 6 April 2015.
If you’re seconded to the UK you may be eligible for Overseas Workday Relief.
This means you’ll only pay UK tax on UK employment income based on the number of days you’ve worked in the UK. You won’t pay tax on overseas work as long as this income is not brought to the UK.