UK Expatriate Tax Services

The TRF is a transitional relief for those who previously used the remittance basis. For the 2025/26 and 2026/27 tax years, you can bring previously un-remitted foreign income into the UK at a reduced tax rate of 12%.

Under the 2026 reforms, once you have been a UK resident for 10 out of the last 20 years, your entire global estate becomes subject to UK Inheritance Tax. Early restructuring of offshore assets is essential before hitting this 10-year milestone.

Yes. OWR remains available under the new system for the first three years of residency. It allows employees to avoid UK tax on the portion of their salary related to duties performed outside the UK, provided the FIG regime is also claimed.

In 2026 UK tax rules for expatriates are primarily determined by your residency status under the Statutory Residence Test (SRT). If you are a non resident, you generally only pay UK tax on UK sourced income, such as rental profits. However new Foreign Income and Gains (FIG) regime now offers a 4 year tax free window for qualifying new or returning residents, replacing the old Non Dom system.

While the UK does not have a single exit tax, you can avoid significant charges by planning your departure at least 6 to 12 months in advance. Key strategies include:

• Selling assets or rebasing them while still a resident to utilise current allowances.
• Applying for Split Year Treatment to ensure you aren't taxed on foreign earnings after you move.
• Reviewing UK based trusts and close companies to prevent immediate tax charges upon leaving.

The 60 percent tax trap occurs when your income falls between £100,000 and £125,140, as you lose £1 of your Personal Allowance for every £2 earned. To avoid this:

• Pension Contributions: Increasing your pension via salary sacrifice is the most effective way to pull your adjusted net income back below £100,000.
• Charitable Donations: Using Gift Aid can also minimise your taxable income total.
• Electric Vehicle Schemes: Salary sacrifice for an EV can further lower your headline salary and restore your full allowance.

Known as the Temporary Non Residence Rule, this prevents individuals from avoiding tax by leaving the UK for a short period. If you return to the UK within 5 years of departing and were a resident for 4 of the previous 7 years, HMRC can retroactively tax certain income and capital gains you made while abroad. As of April 2026 these rules have been tightened especially regarding dividends from personal companies.