Leaving The UK Checklist
Residency and Tax Status
1.Check UK Residency Status – Use the Statutory Residence Test (SRT) to determine if you remain a UK tax resident for the tax year in which you leave.
2.Consider Split Year Treatment – If applicable, the tax year can be divided into a UK-resident and non-UK-resident period.
3.Check Double Taxation Agreements (DTAs) – Review any DTA between the UK and the new country to avoid double taxation and ensure the correct allocation of tax.
4.Notify HMRC of Your Departure – Complete and submit Form P85 to inform HMRC of your move and apply for any tax refund due.
Income Tax & Employment Considerations
5.Review Tax on Employment Income – If you continue working for a UK employer, consider tax withholding rules in the new country to prevent unexpected tax liabilities.
6. Register for the Non-Resident Landlord Scheme (NRLS) – If you plan to rent out UK property, register with HMRC to receive rental income gross (without tax deducted at source) or have tax deducted at 20%.
7.Consider Tax Implications of Remote Work – If working remotely for a UK company while abroad, check local tax and employment laws to ensure compliance with payroll and tax obligations.
Capital Gains Tax (CGT)
8.Determine CGT Liabilities – If you dispose of UK assets (property, shares, etc.), check whether you remain liable for UK CGT as a non-resident.
9.Non-Resident CGT on UK Property – Non-residents must still pay CGT on the sale of UK property and should report this to HMRC.
10.Check the 5-Year Rule for CGT Exemption – If you remain non-resident for 5 full tax years, disposals of other UK assets may be exempt from UK CGT (subject to anti-avoidance rules).
Pensions & Savings
11.Review Tax Treatment of UK Pensions – UK pensions may still be taxable in the UK or the new country, depending on the tax treaty between the two countries.
12.Check ISA and Investment Taxation – ISAs are tax-free in the UK but may be taxable in your new country of residence.
13. Consider Transferring Pension Overseas – If eligible, explore QROPS (Qualifying Recognised Overseas Pension Scheme) options, which may provide tax efficiency in your new country.
Property and Inheritance Tax (IHT)
14. Decide Whether to Sell or Rent UK Property – Assess CGT, rental tax, and mortgage implications before making a decision on your UK property.
15. Consider Inheritance Tax (IHT) Exposure – UK domicile rules mean you may still be liable for UK IHT on worldwide assets, even after leaving the UK.
16. Estate Planning and Trusts – Review your wills and trusts to ensure they align with your new tax residency and estate planning goals.
National Insurance & Social Security
17.Check NI Contributions – If you plan to return to the UK, consider voluntary NI contributions to maintain eligibility for UK benefits (e.g., state pension).
18. Understand Local Social Security Rules – Some countries have social security agreements with the UK, which may affect your contributions and benefits.
Business Owners & Self-Employed
19.Deregister as a UK Business – If self-employed or running a UK company, consider cessation or restructuring options to avoid unnecessary tax liabilities.
20.Review VAT Obligations – If registered for UK VAT, determine if you need to deregister or comply with reverse charge rules when doing business overseas.
Banking & Financial Accounts
21.Update HMRC on UK Bank Interest – Non-residents may still be taxed on UK bank interest, depending on the tax treaty between the UK and your new country.
22. Inform UK Banks & Investment Providers – Ensure your financial providers are aware of your non-resident status, as this may affect tax reporting and investment options.