What to Know About Your Tax Position When Moving to the UK

There’s a lot to think about when moving to the UK — schools, housing, settling into a new role, and taxes probably aren’t at the top of your list. But they matter more than most people realise.

The UK doesn’t just tax what you earn here.

Depending on your situation, your overseas income, investments, and even family wealth could come into play. 

And with recent changes to the rules for people moving from abroad, what you might have read a few years ago could already be out of date.

The important move is to stay compliant and make sure your finances work smoothly while you’re living here.

This guide breaks down the key things you should know about your tax position when moving to the UK.

How UK tax residence is decided when you move

One of the first things to understand is whether the UK will see you as “resident” for tax purposes. 

It’s not just about having a flat in London or spending most of your time in the UK; the Statutory Residence Test (SRT) is used to decide.

The test looks at things like:

• Days spent in the UK during a tax year.
• Ties you have here, such as a home, family, or work.
• Whether you’ve been living in the UK in recent years.

To make it clearer: if you live and work full-time in the UK, you’ll be considered resident and taxed on your income from that year. But if you split your time between countries, or move partway through a tax year, the rules can get more complex.

To help, there are split-year rules that often apply when you first move. 

This means you’re only treated as a UK-resident from the date you actually arrive to live here, rather than being taxed for the whole year.

Getting your residence position right is important because it decides how much of your income and investments fall within the UK tax net. 

If you’re unsure, it’s always worth checking the HMRC guidance or getting advice before filing.

What the new foreign income and gains rules mean for expats

In the past, many expats used something called the “remittance basis.” It meant that as long as you kept your overseas income or gains outside the UK, they weren’t taxed here. From 6 April 2025, that option disappeared.

Instead, there’s a new system called the Foreign Income and Gains (FIG) regime. 

• If you haven’t lived in the UK for the last 10 tax years, you may qualify.
• For your first four years of UK residence, your overseas income and gains are completely exempt from UK tax.
• Once the four years are up, the UK starts taxing your worldwide income and gains, no matter where the money sits.

For someone with assets spread across countries, this new system feels a bit like a grace period. 

It gives you time to get organised, but it also has a clear end date. 

That makes early planning essential. If you leave it too late, you may find yourself paying more tax than you expected once the relief period runs out.

How overseas assets and inheritance are taxed in the UK

Over here, it’s not just your salary or local investments that matter. 

The UK tax system can also look at your overseas assets and sometimes, even what happens to them when they’re passed on.

From April 2025, inheritance tax (IHT) is shifting from a “domicile-based” system to one that’s more focused on residence. 

This means the longer you stay in the UK, the more likely it is that your worldwide estate and not just UK property could be within the IHT net. 

The rules become: residence matters more than where you consider “home.”

This can come as a surprise to families with property, shares, or trusts overseas, meaning a house in Hong Kong or an investment account in the US could eventually be exposed to UK tax, even if you never move those assets here.

That doesn’t mean you can’t protect what you’ve built. 

With the right planning, there are often ways to structure your assets to reduce exposure and make sure more of your wealth passes to your children or beneficiaries. 

But it’s far easier to put those plans in place early, while you still have options, than to leave it until the rules already apply.

Practical steps to get your UK tax position right from the start

If you’re ready to settle into life in the UK, it’s easier when your finances aren’t hanging over you. A few early steps can make a big difference:

1. Check your residence status in your first year. If you arrive mid-year, you may qualify for the split-year treatment, which means you’re only taxed from the date you move.
2. Make use of the four-year FIG window if you’re eligible. Think about how to organise your overseas income and gains so you’re not caught off guard once worldwide taxation begins.
3. Review your overseas assets and estate plans. With the new inheritance tax rules linked to residence, it’s wise to understand how your global wealth could be treated in the UK.
4. Get advice early. Every situation is different, especially if you have income, property, or trusts spread across multiple countries. A professional can help you spot pitfalls before they become problems.

Starting with these steps helps you settle in with more certainty, know where the risks are, use the reliefs available to you, and get support where it counts.

Conclusion

Moving to the UK brings plenty of changes, and tax is one of the most important to get right early. Every person’s situation is different, especially if you have income or assets in more than one country. 

Taking time to review your position and getting the right advice where needed can save you stress, unexpected costs, and help you protect the wealth you’ve worked hard to build.

I hope you found this useful.

Thanks for reading!