The UK tax year runs from 6 April to 5 April. If you move to or from the UK part way through that year, you could be treated as UK resident for the whole year. That can mean UK tax on income you earned while living abroad.
Split-year treatment can prevent this. It splits the tax year into two parts:
- UK part: UK tax applies to your worldwide income
- Overseas part: generally only UK income is taxed in the UK
The good news is that you do not apply for it separately. It applies automatically if you meet the rules, and we confirm it on your tax return. The catch is that the rules are strict, and HMRC can ask for proof.
Step one: are you UK resident for the year?
Split-year treatment only applies if you are UK resident for that tax year under the Statutory Residence Test. If you are not UK resident at all, you do not need it. We can check this for you.
Step two: does your situation fit one of the eight cases?
If you are leaving the UK
You must have been UK resident last tax year and become non-resident next tax year.
Case 1: You start a full-time job abroad
- You work full-time overseas from your start date until 5 April
- You keep UK work days and UK visits within set limits
- Your overseas part starts from your first proper working day abroad
Case 2: You move abroad to join your partner who has started a full-time job there
- Your partner qualifies under Case 1
- After moving, you either have no UK home, or you spend most of your time in your overseas home
- You keep your UK visits within set limits
- Your overseas part starts from the later of the day you join your partner and the day they start work abroad
Case 3: You give up your UK home and move abroad
- You had a UK home at the start of the year and then give up every UK home
- You spend no more than 15 days in the UK from that date to 5 April
- Within 6 months you become tax resident abroad, live abroad for 6 months, or have your only home abroad
- Your overseas part starts from the day you no longer have a UK home
If you are coming to the UK
You must have been non-resident last tax year.
Case 4: The UK becomes your only home
- You give up your overseas home, so all your homes are now in the UK
- You keep it that way for the rest of the tax year
- You did not have too many UK connections before that date
Case 5: You start a full-time job in the UK
- The UK job is full-time and lasts at least a year
- You did not have too many UK connections before your start date
- Your UK part starts from your first day of UK work
Case 6: You finish a full-time job abroad and return
- You were non-resident last year because you worked full-time abroad
- You lived in the UK at some point in the few years before you left
- You stay UK resident next tax year
- Your UK part starts the day after your last working day abroad
Case 7: You return with your partner who has finished a full-time job abroad
- Your partner qualifies under Case 6
- You move to the UK to keep living together and stay UK resident next year
- Before your move, you had no UK home, or you lived mainly in your overseas home
- You kept your UK visits within set limits
Case 8: You set up a UK home but keep a home abroad
- You had no UK home at the start of the year, then get one
- You keep a UK home for the rest of this year and all of next year
- You did not have too many UK connections before that date
- You are UK resident next year, and next year is not itself a split year
If more than one case fits, HMRC has set rules on which one applies. For people arriving, it usually comes down to the case that gives the shortest overseas part. We will work this out for you.
What counts as a “home”?
- A house, flat, part of a house, caravan or boat you live in on a settled basis
- You do not need to own it. Living with your parents can count
- A holiday home or occasional stay does not count
- A property you own but have let out or are selling does not count as your home
Watch your UK visits before you move
Before your move date, your allowed UK days are reduced in line with the time left in the year.
Example: someone who would normally be allowed up to 90 days in the UK may only be allowed about 45 days if they move halfway through the tax year. Too many visits before the move could mean losing split-year treatment.
Your checklist
- Keep a log of every day you spend in the UK
- Keep records of UK work days if you work in both countries
- Keep proof of your move date: tenancy or sale contracts, removal invoices, flight bookings, utility and council tax start or end dates, electoral roll changes
- Decide whether you are keeping or giving up a home in the other country
- Check whether you will be UK resident (or non-resident) next tax year too
Disclaimer:
This article is for general information only and does not constitute tax or legal advice.
Tax treatment depends on your individual circumstances; seek professional advice before making decisions.
