Answers · UK 2025/26
What are the main tax considerations when returning to the UK after living abroad?
When you return to the UK and re-establish tax residence under the Statutory Residence Test, you become taxable on your worldwide income. Key issues include split-year treatment (partial year exemption), overseas pension options such as QROPS, NI gaps from years abroad, and UK property owned while you were non-resident.
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Returning to the UK after a period abroad involves re-establishing UK tax residence and dealing with the assets, income, and pension entitlements accumulated during the non-resident period. **Statutory Residence Test (SRT)** The SRT determines when you become UK resident: - Automatic UK residence: 183+ days in the UK in a tax year - Closer ties test: fewer days may create residence depending on family, accommodation, and work ties - You will typically become resident from the date you return if you intend to stay **Split-year treatment** In the year of return, split-year treatment may apply, dividing the tax year into: - A non-resident portion (before your return) -- overseas income in this period generally not taxable in the UK - A UK resident portion (after your return) -- worldwide income taxable This must be claimed on your Self Assessment return. **Overseas income and the FIG regime** If you have not been UK resident in any of the previous **10 consecutive tax years**, you qualify for the 4-year Foreign Income and Gains (FIG) regime -- foreign income and gains are free of UK tax for 4 years even after you return. **National Insurance gaps** Years abroad without paying NI (Class 1 employee, Class 2 self-employed, or Class 3 voluntary) create gaps in your State Pension record: - Full new State Pension (£241.30/week in 2026/27) requires 35 qualifying years - Voluntary Class 3 contributions (£17.45/week in 2026/27) can fill gaps up to 6 years back - Gaps from 2006-2016 can be filled up until April 2025 -- check your record immediately on return **UK property owned while abroad** If you owned UK property during your non-residency: - UK rental income was taxable in the UK throughout (Non-Resident Landlord Scheme) - CGT applies to gains on disposal -- non-residents pay UK CGT on UK property at the same rates as residents (18%/24%) - Rebasing to April 2015 value was available for non-residents on pre-2015 gains **Overseas pensions (QROPS)** If you transferred a UK pension to a QROPS (Qualifying Recognised Overseas Pension Scheme) while abroad: - Transferring back to a UK scheme on return may have tax implications - Review with a specialist -- some QROPS transfers attract an Overseas Transfer Charge - If the QROPS is in the EEA or same country as you lived in, different rules applied
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.