Financial Planning · International Tax
International Tax Planning Guide for Expats 2026
Residency, domicile, CGT, inheritance tax, and double taxation treaties — all the key concepts UK expats need to understand, with links to in-depth guides and free planning tools.
Eight areas of international tax
The key concepts every UK expat must understand
UK Tax Residency — the Statutory Residence Test
The SRT determines your UK income tax and CGT liability for each tax year. Three stages: Automatic Overseas Tests, Automatic UK Tests, and Sufficient Ties Tests.
Run the SRT tool →UK Domicile — and Why It Matters for IHT
Domicile is a deeper concept than residence. It determines your UK IHT exposure on worldwide assets and can survive decades of non-residence.
UK domicile test →Non-Dom Rules 2025 — the New FIG Regime
The remittance basis was abolished from April 2025. New arrivals now have a four-year Foreign Income and Gains (FIG) window during which foreign income and gains are UK tax-free.
Capital Gains Tax for Non-Residents
Non-residents pay UK CGT on UK residential property (since 2015) and commercial property (since 2019). Gains must be reported within 60 days of completion.
CGT calculator →Inheritance Tax — Worldwide vs UK-Sited Assets
From April 2025, UK IHT is residence-based: long-term residents (UK-resident 10 of the last 20 years) pay IHT on worldwide assets, with a tail of up to 10 years after leaving the UK.
IHT calculator →Double Taxation Treaties — Key Treaties for Expats
The UK has 130+ DTTs. Key treaties for popular expat destinations: Spain, UAE, Cyprus, Thailand, Australia, USA, France, Germany. DTTs can eliminate withholding tax and determine pension taxing rights.
Pre-Departure Tax Planning Checklist
Maximise pension contributions. Realise capital gains. Review domicile position. Time your departure date. Consider existing trusts and offshore structures.
Reporting Obligations as a Non-Resident
Self-assessment, P85, Non-Resident Landlord Scheme (NRLS), and overseas equivalents such as Spain's Modelo 720 for assets held abroad.
Double taxation treaties
Key UK double taxation treaties for expats
The UK has bilateral tax treaties with over 130 countries. Below are the most relevant for UK nationals living abroad in 2026. Always seek professional advice on the interaction between any treaty and your personal tax position.
Note: treaty provisions are subject to change and their application depends on individual circumstances. Always verify with a qualified adviser.
Free planning tools
International tax planning tools
Statutory Residence Test
Work through the three-stage SRT to determine your UK tax residence status for a given year.
Use the tool →UK Domicile Test
Assess your UK domicile position and its implications for inheritance tax on worldwide assets.
Use the tool →IHT Exposure Calculator
Estimate your potential UK IHT liability based on the nature and location of your assets.
Use the tool →Frequently asked questions
International tax planning — common questions
What is the difference between tax residence and domicile?
Tax residence determines whether you are liable to UK income tax and capital gains tax in a given year — it changes each year based on where you live and work. Domicile is a deeper legal concept that relates to your "permanent home" and determines your exposure to UK inheritance tax. You can be non-UK resident (not paying UK income tax on overseas income) but still UK domiciled (and therefore liable to IHT on your worldwide assets). The two concepts operate independently and require separate planning.
What is the Statutory Residence Test?
The Statutory Residence Test (SRT) is the framework introduced in 2013 by which HMRC determines whether an individual is UK resident for tax purposes in a given tax year. It has three stages: the Automatic Overseas Tests (which can make you definitively non-resident), the Automatic UK Tests (which can make you definitively resident), and the Sufficient Ties Tests (which applies a mixture of UK ties and days spent in the UK for those not caught by either automatic test). Our free SRT tool walks you through each stage.
What is the 4-year Foreign Income and Gains regime introduced in 2025?
The April 2025 Finance Act replaced the remittance basis for non-domiciled UK residents with a new four-year Foreign Income and Gains (FIG) regime. New arrivals to the UK who have not been UK resident in the previous 10 years can elect to pay no UK tax on foreign income and gains for their first four years of UK residence. After four years, worldwide income and gains become taxable in the UK in the normal way. This replaced the previous non-dom remittance basis which had existed for centuries.
Are capital gains on UK property taxable for non-residents?
Yes. Non-residents have been subject to UK CGT on gains from UK residential property since April 2015, and on UK commercial property since April 2019. Non-residents must report and pay any UK CGT within 60 days of completing a UK property sale, even if they do not otherwise file a UK self-assessment return. Principal Private Residence (PPR) relief can still apply in some circumstances for non-residents, but is subject to restrictions on the number of qualifying days spent in the property.
How does UK inheritance tax apply to expats?
UK inheritance tax (IHT) charges at 40% on estates above the nil-rate band (£325,000, or up to £1 million for a married couple with the residence nil-rate band and transferable allowances). Whether IHT applies to your worldwide estate or only to your UK-sited assets now depends on your residence history rather than your domicile. From 6 April 2025, IHT moved to a residence-based test: "long-term residents" (UK-resident for 10 of the last 20 tax years) become subject to IHT on worldwide assets, and can remain within scope for up to 10 years after leaving the UK. The former domicile and "deemed domicile" tests no longer determine IHT exposure.
What is a double taxation treaty and how does it help?
A double taxation treaty (DTT) is a bilateral agreement between two countries that determines which country has the right to tax specific types of income and gains. The UK has over 130 DTTs in force. For expats, DTTs are particularly important for: determining where pension income is taxed (often the country of residence); eliminating withholding tax on investment income; and preventing the same gain from being taxed twice. To benefit from a DTT, you typically need to demonstrate your tax residence in the treaty country and may need to apply for an NT (nil tax) code from HMRC.
What is pre-departure tax planning?
Pre-departure tax planning involves structuring your financial affairs before you leave the UK to minimise tax liabilities that would otherwise crystallise on departure or during non-resident years. Key pre-departure actions often include: maximising pension contributions while UK relief is available; realising capital gains up to the annual exemption; crystallising losses on poor investments; reviewing the domicile position; reviewing the status of existing trusts; and — critically — timing the actual departure date to maximise the number of full tax years of non-residence.
What UK tax returns must I file as a non-resident?
As a non-resident, you are required to file a UK self-assessment tax return if you have: UK rental income; certain UK-source employment or self-employment income; taxable UK pension income (if not already taxed at source under the correct code); capital gains from UK property; or if HMRC sends you a notice to file. You will also need to file a P85 when you leave. If you have no UK-source income or UK gains, a self-assessment return may not be required — but you should confirm this position with a qualified adviser.
Get international tax planning advice
International tax planning is not straightforward. The interaction between UK and local rules, the available DTT reliefs, and the timing of decisions can make a material difference to your overall tax position. We provide clear, independent advice.
Get personalised international tax planning advice
Every expat's tax position is different. Tell us about yours and one of our independent advisers will get back to you with clear, jargon-free guidance on your residency, domicile, CGT, and IHT position.