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Tax residency in UK

In the UK, your immigration status and tax residence are not directly related and must be considered separately. Your immigration status is your rights to enter, live and work in the country depending on your visa or nationality.

Your tax residence position must be considered when arriving to the UK on any type of visa.

Since tax year 2013/14 a Statutory Residence Test (SRT) has been introduced by HMRC. Completion of this test will result in understanding your tax resident position in the UK. Each tax year should be looked at separately, therefore the tests must be applied for each year individually.

If you are a tax resident in the UK the starting position is that you are tax resident for the whole tax year during which you arrive. Once you have established that, you need to look into further tests to understand whether you are a resident for the whole tax year during which you have arrived or whether you may be eligible to have the year split into two parts where you are resident only from the day you arrive.

Furthermore, if you are a tax resident in the UK you are liable to tax on all your worldwide income unless you are non-domicile. In this case you use special tax regime called Remittance basis.

When you worked out that you are a tax resident in the UK in a year under a question you should consider the level of your income worldwide and if this level is above £2,500 per year and it is not an employment in the UK you are obliged to prepare and submit your Self-Assessment Tax Return (SA TR).

Tax year in the UK starts on 6 April and finishes on 5 April. So, you have time until 31 January the next year after the questioned to prepare and submit your SA TR.

Please pay attention, that even if you were or were not considered a non-UK resident before the SRT was introduced in 2013, your status may have changed since its introduction.

If you have questions about your tax position in the UK, non-domicile status, whenever you need or not to prepare Self-Assessment Tax Return, specialists at Imperial & Legal would be delighted to assist you with any matters.

To discuss your requirements, please contact our specialists or call us on +44 (0)203 490 41 21.

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+44 (0)203 490 41 21

115 Baker Street
London, W1U 6RT