Country topic
Tax in United Kingdom
UK tax residence depends on days spent in the UK in the tax year, which runs from 6 April to 5 April. You are resident if you meet an automatic UK test or the sufficient ties test and no automatic overseas test. The automatic UK tests include 183 or more days in the UK. You are usually non-resident with fewer than 16 days (46 if you were not UK resident in the 3 previous tax years). Between those, ties such as family, accommodation and work count. [T1] [T2] UK residents normally pay UK tax on income from the UK and abroad. When you move in, the tax year is usually split into a non-resident part and a resident part. A stay of 183 days or more in one tax year meets the first automatic UK test, so a full 6 months as a visitor can make you UK resident. If you have not filed before, tell HMRC by 5 October after the tax year in which you had foreign income. [T1]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- UK tax residence depends on days spent in the UK in the tax year, which runs from 6 April to 5 April. You are resident if you meet an automatic UK test or the sufficient ties test and no automatic overseas test. The automatic UK tests include 183 or more days in the UK. You are usually non-resident with fewer than 16 days (46 if you were not UK resident in the 3 previous tax years). Between those, ties such as family, accommodation and work count. [T1] [T2]
- UK residents normally pay UK tax on income from the UK and abroad. When you move in, the tax year is usually split into a non-resident part and a resident part. A stay of 183 days or more in one tax year meets the first automatic UK test, so a full 6 months as a visitor can make you UK resident. If you have not filed before, tell HMRC by 5 October after the tax year in which you had foreign income. [T1]
- For 2026 to 2027 outside Scotland the Personal Allowance is £12,570, then 20% up to £50,270, 40% up to £125,140 and 45% above. The allowance shrinks by £1 for every £2 of income above £100,000 and is zero from £125,140. The first £1,000 of income from self-employment or from rented property can be tax-free under the trading and property allowances. [T3]
- Scotland, including Edinburgh, sets its own Income Tax bands on wages, pensions and most other taxable income. For 2026 to 2027, after the £12,570 allowance: 19% to £16,537, 20% to £29,526, 21% to £43,662, 42% to £75,000, 45% to £125,140 and 48% above. Dividends and savings interest are taxed as in the rest of the UK. [T4]
- Employees pay Class 1 National Insurance of 8% on weekly earnings from £242.01 to £967 and 2% above. The self-employed pay Class 4 of 6% on profits from £12,570 to £50,270 and 2% above, and no Class 2 contributions where profit is £7,105 or more. [T5] [T6]
- Capital gains are taxed at 18% and 24% for individuals, with a £3,000 annual exempt amount. [T7]
- From 6 April 2025 the 4-year foreign income and gains regime replaced the remittance basis. You can claim it if you are UK resident and in your first 4 years as a UK tax resident after at least 10 years as a non-UK tax resident. It covers eligible foreign income and gains, but foreign earnings are not eligible, and claiming it means losing the tax-free allowances for Income Tax and Capital Gains Tax. [T8] [T9]
- Overseas Workday Relief covers employment income for duties you perform outside the UK in the first years of residence, up to the lower of 30% of the qualifying employment income or £300,000. Work you do while physically in the UK is not covered, so an employee working remotely from the UK gains little from it. [T10]
- US citizens abroad file US returns on worldwide income. The 2026 foreign earned income exclusion limit is $132,900 per person; its physical presence test needs 330 full days abroad in 12 consecutive months. Foreign accounts above $10,000 in total at any time in the year are reportable on an FBAR, and shares in some non-US investment funds can trigger a separate US form (8621). [T11] [T12] [T13] [T14] [T15]
- The US-UK income tax convention of 2001 (in force since 31 March 2003) has a saving clause that lets each country tax its own citizens as if the treaty had not come into effect, with listed exceptions. It sets a tie-breaker (permanent home, then centre of vital interests, then habitual abode, then nationality) if both countries treat you as resident, and the United States gives a credit for UK income tax paid. Dividends can be taxed by the source country up to 15% (5% for qualifying companies). [T16] [T17] [T18]
- The US and UK have had a social security agreement in force since 1 January 1985. On the US side's overview, an employee sent from the US by a US employer is generally exempt from UK contributions for assignments of 5 years or less with a certificate of coverage. For a US employee who moves on their own and keeps working remotely for a US employer, no official rule was found, so it is unknown. [T19] [T20]
- HMRC lists an income tax convention in force with Australia (2003), Canada (1978) and New Zealand (1983); a new New Zealand convention signed in 2026 is marked not in force. How Australian, Canadian or New Zealand citizens are taxed at home when they live in the UK is not checked here. [T21] [T22] [T23]
- Moving abroad does not automatically end state tax residency in your US state; a private adviser (not an official source) says to check your state's rules before you leave. [T24]
The country
More on United Kingdom.
Topics
More about United Kingdom.
Questions about Tax in United Kingdom.
How does the United Kingdom decide whether I am tax resident?
By days in the 6 April to 5 April tax year, then ties. Automatic UK tests include 183 or more days; you are usually non-resident with fewer than 16 days (46 if not resident in the 3 previous tax years). In between, ties such as family, accommodation and work count. The test is in Schedule 45 of the 2013 Finance Act.
What are the UK income tax rates?
For 2026 to 2027 the Personal Allowance is £12,570, then 20% to £50,270, 40% to £125,140 and 45% above; the allowance shrinks by £1 for every £2 over £100,000. Scotland has six bands, from 19% to 48%. Dividends and savings interest are taxed as in the rest of the UK.
What National Insurance and capital gains tax do residents pay?
Employees pay Class 1 National Insurance of 8% on weekly earnings from £242.01 to £967 and 2% above. The self-employed pay Class 4 of 6% on profits from £12,570 to £50,270 and 2% above. Capital gains tax is 18% and 24% for individuals, with a £3,000 annual exempt amount.
Are there tax reliefs for people new to the United Kingdom?
Yes, with limits. The 4-year foreign income and gains regime needs at least 10 years as a non-UK resident and does not cover foreign earnings. Overseas Workday Relief covers duties performed outside the UK, up to the lower of 30% of that income or £300,000, so it helps little with remote work from the UK.
Do I still pay tax at home if I move to the United Kingdom?
US citizens still file US returns on worldwide income; the 2026 foreign earned income exclusion limit is $132,900. HMRC lists income tax conventions in force with Australia, Canada and New Zealand, but how those citizens are taxed at home is not checked here. Ask an adviser who knows both systems.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] Tax on foreign income, HM Revenue and Customs (GOV.UK). Checked 16 October 2026. UK residents normally pay UK tax on all income whether from the UK or abroad; Statutory Residence Test automatic UK and overseas tests; tax year 6 April to 5 April; split-year treatment; Self Assessment; claiming relief when taxed twice.
- [T2] Finance Act 2013, Schedule 45: Statutory Residence Test, legislation.gov.uk (UK Parliament). Checked 16 October 2026. The law behind the automatic UK tests, the automatic overseas tests and the sufficient ties test.
- [T3] Income Tax rates and Personal Allowances (tax year 6 April 2026 to 5 April 2027), HM Revenue and Customs (GOV.UK). Checked 16 October 2026. Personal Allowance 12,570 pounds; 20 percent to 50,270 pounds; 40 percent to 125,140 pounds; 45 percent above; allowance reduced above 100,000 pounds; bands differ in Scotland.
- [T4] Income Tax in Scotland, GOV.UK (HM Revenue and Customs). Checked 16 October 2026. Read on 16 October 2026: 2026 to 2027 Scottish bands after the £12,570 Personal Allowance: 19% to £16,537, 20% to £29,526, 21% to £43,662, 42% to £75,000, 45% to £125,140, 48% above.
- [T5] National Insurance rates and categories (6 April 2026 to 5 April 2027), HM Revenue and Customs (GOV.UK). Checked 16 October 2026. Employee category A: 8 percent between 242.01 and 967 pounds a week and 2 percent above.
- [T6] Self-employed National Insurance rates (tax year 2026 to 2027), HM Revenue and Customs (GOV.UK). Checked 16 October 2026. Class 4: 6 percent on profits from 12,570 to 50,270 pounds and 2 percent above; no Class 2 contributions to pay above 7,105 pounds of profit.
- [T7] Capital Gains Tax rates and allowances, HM Revenue and Customs (GOV.UK). Checked 16 October 2026. From 6 April 2026 rates of 18 and 24 percent for individuals; annual exempt amount 3,000 pounds; no annual exempt amount in a year you claim the foreign income and gains regime or Overseas Workday Relief.
- [T8] Check if you can claim the 4-year foreign income and gains regime, HM Revenue and Customs (GOV.UK). Checked 16 October 2026. From 6 April 2025 the regime replaced the remittance basis; qualifying resident after at least 10 years non-UK resident; maximum 4 years; claimed on Self Assessment; foreign earnings not eligible; allowances lost.
- [T9] Finance Act 2025, Part 2: replacement of the special rules for foreign income and gains, legislation.gov.uk (UK Parliament). Checked 16 October 2026. Chapter 1: new rules for foreign income and gains of individuals becoming UK resident; Schedule 9: no remittance basis for tax years after 2024-25.
- [T10] Overseas Workday Relief (updated 6 April 2026), HM Revenue and Customs (GOV.UK). Checked 16 October 2026. Relief for qualifying new residents on employment income for duties performed outside the UK; limit of the lower of 30 percent or 300,000 pounds; election in Self Assessment loses the Personal Allowance and annual exempt amount for the year.
- [T11] US citizens abroad: filing requirements, Internal Revenue Service. Checked 16 October 2026. US citizens abroad file in the same way as those at home, on worldwide income.
- [T12] Foreign earned income exclusion, Internal Revenue Service. Checked 16 October 2026. Maximum exclusion for tax year 2026: 132,900 dollars per person.
- [T13] Physical presence test, Internal Revenue Service. Checked 16 October 2026. 330 full days in a foreign country or countries in any 12 consecutive months.
- [T14] Report of Foreign Bank and Financial Accounts (FBAR), Financial Crimes Enforcement Network (FinCEN). Checked 16 October 2026. Report if foreign accounts total more than 10,000 dollars at any time in the year.
- [T15] About Form 8621 (passive foreign investment companies), Internal Revenue Service. Checked 16 October 2026. A US person who holds shares in a passive foreign investment company files Form 8621 in set cases.
- [T16] UK-USA income tax convention of 2001 (full text), US Department of the Treasury. Checked 16 October 2026. Article 1(4) saving clause and 1(5) exceptions, Article 4 residence and tie-breaker, Articles 10 to 12 dividends, interest and royalties, Article 14 employment income, Article 17(3) social security payments, Article 24 relief from double taxation.
- [T17] USA: tax treaties, HM Revenue and Customs (GOV.UK). Checked 16 October 2026. The 2001 convention as amended by the 2002 protocol is in force; entered into force on 31 March 2003; effective in the UK from 6 April 2003 for Income Tax and Capital Gains Tax.
- [T18] United Kingdom (UK) tax treaty documents, Internal Revenue Service. Checked 16 October 2026. IRS page linking the 2001 convention, technical explanation, protocol and exchange of notes.
- [T19] U.S. international Social Security agreements, overview: Internet Archive copy of 12 May 2026, US Social Security Administration. Checked 16 October 2026. United Kingdom agreement in force from 1 January 1985; detached-worker rule generally for assignments of 5 years or less; certificates of coverage.
- [T20] Totalization agreement with the United Kingdom: Internet Archive copy of 2 January 2026, US Social Security Administration. Checked 16 October 2026. Self-employed workers who reside in the United States are assigned US coverage and those who reside in the United Kingdom are assigned UK coverage; certificates are requested to prove exemption.
- [T21] Australia: tax treaties, HM Revenue and Customs (GOV.UK). Checked 16 October 2026. Read on 16 October 2026: lists the 2003 Australia-UK Double Taxation Convention as in force.
- [T22] Canada: tax treaties, HM Revenue and Customs (GOV.UK). Checked 16 October 2026. Read on 16 October 2026: lists the 1978 Canada-UK Double Taxation Convention as in force.
- [T23] New Zealand: tax treaties, HM Revenue and Customs (GOV.UK). Checked 16 October 2026. Read on 16 October 2026: lists the 1983 UK-New Zealand Double Taxation Convention as in force; a 2026 convention was added on 10 June 2026 and is marked not in force.
- [T24] State taxes after moving abroad, Expatriate Tax Returns (private adviser, not official). Checked 16 October 2026. Moving abroad does not always end state tax residency.