An expatriate is an individual living in a country other than their native country. Expatriation tax is a tax on an individual who ceases to be resident in another country.

A person who is planning to come to the UK should consider the possible tax consequences before he arrives here to maximise the changes of either reducing or eliminating any UK tax. The extent of planning depends on various factors such as short-term employment or study, long-term study or investment, UK settlement etc. individual advice is therefore important.

Over the years, Martax Accountants has worked with many individuals coming to the UK. This page gives an overview of some information, which might be relevant to your circumstances.

Your tax status on arrival in the UK

There are two main concepts to understand which are related to people coming to the UK. These will mainly determine how you will be taxed in the UK:

  • Residence
  • Domicile

There are three tests, which will determine whether you are resident or not resident in the UK. These are as below:

  • Automatic UK tests
  • Automatic overseas tests
  • Sufficient ties tests

Domicile is another important concept which needs to be understood to determine how you will be taxed in the UK. There are three types of domiciles:

  • Domicile of origin
  • Domicile of dependency
  • Domicile of choice

Basis of taxation in the UK

Once your residency and domicile status is determined, you will need to understand how you will be taxed:

Non-UK Residents
Generally, taxpayers who are not resident in the UK during a tax year are only taxable on their UK income arising in that tax year. Generally, UK income is taxed for everyone regardless of his or her residency and domicile status. Foreign income arising to non-residents is not taxable in the UK.

UK Resident and Domicile
UK residents who are domiciled in the UK are taxable on their worldwide income. All of their worldwide income will be taxed in the UK. However, if there is foreign income already taxed in the overseas country, they will get a tax credit for all or part of the foreign tax paid.

UK Resident but not Domicile
Generally, taxpayers who are resident in the UK in a tax year are taxable on their worldwide income and gains arising in the tax year, but non-domiciled individuals have the option to claim for the remittance basis.
A claim for remittance basis means that they will be only be taxable on their foreign income if they remit it into the UK.

Please click on this link to read more about remittance basis and the remittance basis charge.

UK residency and remittance basis rules are highly complex areas of taxation and therefore you should consider seeking professional advice related to your circumstances before making any decision regarding your tax affairs. The above information is simply provides an overview of tax information for individuals coming to the UK.

If you are coming to the UK and need help with your taxes, please complete this form or drop us an email on