Living abroad introduces a unique set of financial considerations, particularly when it comes to tax obligations in the UK. While many UK nationals assume they’re free from local tax responsibilities the moment they leave the country, the reality is more nuanced. The need to file a UK Self Assessment tax return can continue even after departure, depending on the type of income received, the level of UK ties maintained, and how residency status is determined under tax law.
Understanding when a return is required and which forms apply is the first step toward staying compliant and avoiding penalties. This guide will take you through the criteria that determine whether an expat needs to file, how UK residency status is assessed, and the circumstances under which additional supplementary pages must be included in your Self Assessment.
Why Expats Might Still Be Required to File a Tax Return
Not everyone living abroad is exempt from submitting a UK tax return. The obligation doesn’t disappear simply because someone has moved overseas. If you continue to have income arising in the UK—such as rental income, interest from UK bank accounts, pensions, or dividends from UK companies—you may still be within the scope of UK tax rules.
In addition to income directly tied to the UK, residency status can play a decisive role in determining your tax obligations. Even if you’re physically located outside the UK for much of the year, certain connections to the country could keep you within its tax net. For example, having a home in the UK or continuing to visit frequently can impact your residency classification and trigger the need to report worldwide income.
If HMRC issues you a notice to complete a Self Assessment return, it is a legal requirement to comply—even if your income is low or has already been taxed elsewhere. Ignoring the notice can result in automatic late filing penalties, which are enforced whether or not tax is owed.
Determining UK Tax Residency
Whether or not you’re considered a UK tax resident is central to your obligation to report income. The UK uses a structured process known as the statutory residence test to determine an individual’s residency status each tax year. This test examines the number of days you spend in the UK, along with other key indicators such as the availability of accommodation, the location of your family, and employment activities.
The test operates in three parts: automatic residence, automatic non-residence, and a series of sufficient ties. You’re automatically a resident if you spend 183 days or more in the UK in a given tax year. However, spending fewer than 183 days doesn’t automatically make you non-resident. Other criteria may still classify you as resident depending on your level of connection to the UK.
If you had a home in the UK during the year that was available to you for at least 91 consecutive days, and you spent at least 30 days in that home, you could still meet the test for UK residency. Similarly, having a spouse or children living in the UK, or working full-time in the UK, may result in residency being retained even if you’re living or working abroad for most of the year.
On the other hand, automatic non-residence applies if you spent fewer than 16 days in the UK and were not a UK resident in any of the three previous tax years. This threshold rises to 46 days if you were resident in one or more of the past three tax years.
Introducing the SA109 Supplementary Pages
If you’re classed as non-resident for UK tax purposes, or if you are a dual resident under international tax treaties, you will need to complete the SA109 supplementary pages. These are designed to help HMRC understand your residence status and apply the correct tax treatment to your income.
The SA109 form must also be completed if you claim the remittance basis of taxation. This basis allows UK residents who are domiciled abroad to pay UK tax only on the foreign income and gains that are brought into the UK. While it can be advantageous for some, choosing this basis means giving up personal tax-free allowances and could result in a remittance basis charge for long-term UK residents.
The SA109 asks you to confirm the number of days you spent in the UK during the tax year, whether you had access to a home in the UK, and whether you had ties such as close family or employment in the country. If you’re applying for split year treatment—where part of the year is spent as a UK resident and part as a non-resident—you’ll also need to provide supporting information within this form.
Reporting Foreign Income with the SA106
Expats who earn income from sources outside the UK may need to complete the SA106 supplementary pages in their tax return. This form covers a wide range of overseas income types and is necessary when you need to declare:
- Interest or dividends from foreign savings and investments
- Pensions paid by foreign governments or institutions
- Rental income from property located outside the UK
- Trust income and gains from offshore funds
- Other income received from foreign employment or consultancy work
In addition to stating the gross amount of each type of income, the SA106 requires information about foreign tax already paid on that income. This is important for claiming Foreign Tax Credit Relief, which can reduce or eliminate the risk of being taxed twice on the same income.
The form is structured to allow declaration of each foreign income type in its own section, with separate boxes for currency conversions, dates received, and taxes withheld abroad. It also includes space to note whether any income is unremittable, meaning it cannot be brought into the UK due to legal or financial restrictions in the country of origin.
If your only foreign income is dividend income of less than £300 for the year, you may not need to complete the SA106, provided no foreign tax relief is being claimed. However, for those with multiple foreign income streams or any associated tax claims, completing the form is essential.
Understanding the Remittance Basis and Tax Relief
The remittance basis is available to individuals who are UK tax residents but not domiciled in the UK. If claimed, it allows them to be taxed only on foreign income and gains that are brought into the UK. This basis must be claimed annually through the SA109 and can carry consequences such as losing the personal allowance and capital gains tax annual exemption.
For those not using the remittance basis, the arising basis applies. This means all worldwide income and gains are subject to UK tax, regardless of whether the income is brought into the UK.
When using the SA106 to report foreign income under the arising basis, you may claim Foreign Tax Credit Relief to offset tax already paid in the country where the income originated. Relief is available only where there is no exclusion under a double taxation agreement and must be calculated carefully to avoid excessive or underclaimed relief. Accurate documentation of foreign tax paid is crucial in such cases.
Foreign Income That Requires a Different Section
Not all income from outside the UK belongs in the SA106. For instance, if you operated a business while living abroad, income from that business should be reported in the self-employment section of the tax return. Similarly, if you were part of a partnership, the relevant income must be declared in the partnership section.
Capital gains made from selling overseas assets are declared using the SA108 form. This supplementary page asks for details about the acquisition and disposal of the asset, gain or loss realised, and any available reliefs or exemptions.
If you were employed by a foreign company, or received foreign earnings while working abroad, this income should be declared in the employment section of your tax return. Additional benefits or reimbursements not listed in standard employment fields may also need to be reported in the additional information section.
If you earned income from a furnished holiday let in a European Economic Area country, you should use the UK property section of the return rather than the foreign income pages. Despite being located outside the UK, furnished holiday lets in the EEA are treated similarly to domestic property for tax purposes, provided they meet specific occupancy and availability criteria.
When You Must File Despite Living Abroad
There are many scenarios in which a person living abroad must still file a UK tax return. Consider the case of a former UK resident who moves to Australia but retains ownership of a UK property that is rented out. Despite being a non-resident, they must report their rental income through the UK property pages and complete the SA109 to confirm their non-residency.
Another example involves an individual who moves to Germany but continues to receive pension income from a UK provider. Even if the person becomes tax resident in Germany, they may still need to file a UK tax return if their pension income exceeds the personal allowance or if they want to claim a refund of overpaid tax.
Some expats have complex arrangements that involve income in multiple countries, split-year treatment, or dual residency. In these cases, understanding the interaction between UK tax law and international tax treaties is essential. Claiming reliefs such as Foreign Tax Credit Relief or applying the terms of a double taxation agreement requires correct completion of all relevant sections in the Self Assessment return.
Completing the Return from Overseas – What Expats Must Know
Completing a UK Self Assessment tax return is a task that requires careful attention to detail, especially when you are living abroad. For expats, the process often includes more than just reporting income. It involves assessing residency, understanding the correct tax treatment of foreign income and gains, dealing with currency conversions, and determining whether reliefs or special rules apply.
We explores each component of the Self Assessment tax return relevant to expats. It covers how to approach the process, which supplementary forms to use, and how different types of income must be reported. Whether you are new to overseas tax filing or looking to better understand your obligations, this section will walk you through the practical steps involved.
Gathering the Right Information Before You Start
Before beginning your return, it’s important to collect all the documents and details you’ll need. Being organised makes the process faster and reduces the likelihood of errors. If you have multiple sources of income or are claiming reliefs, the accuracy of these details is especially critical.
You should gather information such as bank statements showing foreign interest, dividend vouchers for overseas investments, payslips from foreign employers, property rental agreements, and records of any capital assets sold abroad. If tax was paid in the country where the income arose, obtain the relevant foreign tax certificates to support any claims for tax relief.
Other important information includes the number of days you spent in the UK during the tax year, dates of arrival or departure if you moved mid-year, and proof of residency status in your new country if you are relying on a double taxation agreement.
Registering for Self Assessment If You Haven’t Already
If you’re required to complete a Self Assessment but haven’t registered yet, this step must be completed before filing. You’ll need to register online with HMRC if you’ve become self-employed, receive income that hasn’t been taxed, or are required to submit a return for other reasons.
Once registered, you will be issued with a Unique Taxpayer Reference (UTR), which you will use each time you file your return. Make sure you allow time for the UTR to arrive, as you’ll need it to access the system and submit your return by the deadline.
Choosing the Correct Forms and Supplementary Pages
The core of the Self Assessment is the SA100 main tax return. This form captures basic information about your personal income, pension contributions, charitable giving, and other taxable benefits. For expats, several supplementary pages may be required, depending on the nature of your income.
Use the SA106 to declare income from foreign savings, investments, pensions, trusts, and property located abroad. If you disposed of foreign assets and made gains, the SA108 should be used to report the details of the sale and any taxable profit. If you are non-resident or claiming the remittance basis, the SA109 is essential to confirm your residency position and ensure proper tax treatment.
If you’re self-employed abroad or part of a partnership, include the self-employment or partnership pages respectively. UK property income, including from furnished holiday lets in the European Economic Area, goes on the UK property pages, even if the property is not in the UK.
Declaring Foreign Income Accurately on the SA106
The SA106 form is the primary document used to report income that arises outside the UK. It is divided into several sections, each covering different types of foreign income. These sections include foreign savings income, dividends, pensions, income from land and property abroad, and any other foreign income not included elsewhere.
You must enter the gross amount of each income type before tax, the amount of any foreign tax withheld, and the net amount received. If claiming Foreign Tax Credit Relief, include the amount of foreign tax you are seeking to offset against your UK liability.
When reporting rental income from overseas property, include all income received, allowable expenses such as maintenance and letting agent fees, and any loss carried forward from previous years. This will give your net taxable profit for the year, which is then added to your total income on the main SA100 form.
Understanding How to Complete the SA109
If your tax residency status is anything other than fully UK resident, the SA109 is where this must be declared. This form allows you to state whether you were resident, non-resident, or claiming split-year treatment for the tax year in question.
You will be asked to confirm the number of days spent in the UK, whether you had access to accommodation, and whether any of the sufficient ties tests apply to you. If you were applying for split-year treatment, you will need to state the date on which your UK residency ended or began during the year, depending on whether you were arriving or leaving.
If you are claiming the remittance basis, you will be required to indicate this on the SA109 and provide details of any foreign income or gains brought into the UK. You must also state whether you are giving up your personal allowance or claiming any double taxation reliefs.
Using the SA108 for Capital Gains from Foreign Assets
Any capital gains from the disposal of overseas assets must be reported on the SA108. This includes the sale of shares, property, or other investments located abroad. You must declare the date of disposal, sale proceeds, acquisition cost, and any incidental costs associated with buying or selling the asset.
Gains are calculated by subtracting the allowable costs from the proceeds of sale. Reliefs such as the annual exempt amount and any available losses can then be applied. If you’ve already paid tax on the gain in another country, you may be eligible for Foreign Tax Credit Relief to reduce your UK liability.
Ensure that all figures are converted into pounds sterling using the appropriate exchange rate at the date of disposal. Keep records of both the original and converted amounts in case of an HMRC query.
Reporting Foreign Employment and Self-Employment Income
If you were employed by a foreign company, your salary, bonuses, and benefits must be reported in the employment section of the SA100. You’ll need to include the gross amount received, any tax deducted by the foreign employer, and details of any employer-provided benefits such as accommodation, relocation costs, or stock options.
Income from self-employment conducted overseas must be entered in the self-employment pages. These pages ask for your turnover, allowable business expenses, net profit, and any adjustments for capital allowances or overlap relief. You may also need to convert foreign currency amounts into sterling using average yearly exchange rates unless more accurate spot rates are available and justifiable.
Claiming Foreign Tax Credit Relief
One of the most useful features for expats is the ability to claim Foreign Tax Credit Relief on income that has already been taxed overseas. This avoids double taxation and ensures you do not pay more tax than necessary.
To make a claim, complete the relevant section of the SA106 and include details of the income, the foreign tax paid, and the treaty rate if the country has a double taxation agreement with the UK. You can only claim relief up to the amount of UK tax due on the same income, and documentation of the foreign tax payment must be retained in case HMRC requests evidence.
If you are not claiming tax credit relief and the foreign income has already been taxed, you might instead choose to exclude the income if the double taxation agreement allows this, though this is less common and must be clearly justified.
Applying for Split-Year Treatment
Split-year treatment applies when your UK tax residency changes partway through the tax year. If you moved abroad or returned to the UK during the year, your income may only be taxable in the UK for the period in which you were a resident.
To claim this treatment, you must complete the SA109 and select the appropriate case that applies to your circumstances. For example, if you left the UK to take up full-time work overseas and met the required conditions, you may qualify for only part-year residency.
You will then divide your income between the UK and overseas periods accordingly, and only income arising during your UK-resident portion of the year will be subject to UK tax. Correctly applying split-year treatment can significantly reduce your tax liability but must be done with precision.
Currency Conversion and Record Keeping
All foreign income must be converted to pounds sterling when reported on your tax return. HMRC publishes official exchange rates for each tax year, but you may also use the spot rate on the date the income was received if you have accurate records.
When converting income or gains, maintain documentation of the source currency, exchange rate used, and the converted amount. This ensures you can verify your calculations if asked to provide supporting evidence later.
In addition to exchange rates, accurate record keeping is crucial when filing a return from abroad. Keep copies of tax returns, foreign income statements, proof of residency, correspondence with HMRC, and receipts for allowable expenses. These records must be retained for at least five years after the filing deadline for each return.
Key Deadlines for Expats Filing from Overseas
The filing deadlines for Self Assessment are the same for expats as for residents in the UK. Paper returns must be filed by 31 October following the end of the tax year, while online returns must be submitted by 31 January.
For the tax year ending 5 April 2025, paper returns are due by 31 October 2025, and online returns must be submitted by 31 January 2026. Any tax due must also be paid by the January deadline to avoid interest and penalties.
If you’re submitting your return from overseas, allow extra time for delays in receiving mail or setting up access to HMRC online services. File early where possible to give yourself time to resolve any issues or ask questions before the deadline approaches.
Common Mistakes Expats Make When Filing a Tax Return
One of the most frequent issues is filing a return without fully understanding the implications of UK residency rules. People often assume that if they no longer live in the UK, they are automatically non-resident for tax purposes. However, residency is determined by specific legal criteria, and failing to assess your status properly can lead to incorrect reporting.
Another frequent mistake involves misreporting or underreporting foreign income. Some taxpayers believe that if income has already been taxed overseas, it does not need to be reported in the UK. But UK residents must declare their worldwide income unless they are eligible for and claiming the remittance basis or qualify for split-year treatment. Failing to do so can result in penalties or increased scrutiny.
Currency conversion errors also occur regularly. If you convert income using incorrect exchange rates or inconsistent methods across different income types, HMRC may challenge your figures. It’s essential to apply accurate and consistent exchange rates for all foreign income, expenses, and gains.
Omitting supplementary pages, such as SA106 or SA109, is another issue. If you report foreign income or claim non-resident status but fail to submit the corresponding forms, your return may be processed incorrectly or flagged for review.
Not Applying for Split-Year Treatment When Eligible
Split-year treatment allows individuals who arrive in or leave the UK partway through the tax year to split the year into two periods: one where they are UK resident, and one where they are not. Failing to apply this treatment when eligible can significantly increase your tax bill, as the UK may attempt to tax income that was earned while you were no longer resident.
To claim split-year treatment, you must complete the SA109 and select the correct case that applies to your situation, whether that’s starting full-time work abroad, joining a partner overseas, or ceasing to have a UK home. Supporting evidence such as employment contracts, lease agreements, or travel records may be useful if HMRC later reviews your claim.
Misunderstanding the Remittance Basis and Its Impact
Claiming the remittance basis of taxation without fully understanding the consequences is another common misstep. While this method may shield certain foreign income and gains from UK tax, it also involves forfeiting the personal allowance and the capital gains annual exempt amount. For long-term residents, it can trigger an annual remittance basis charge, which ranges from thousands of pounds depending on how many years the person has been UK resident.
In some cases, individuals mistakenly believe they are using the remittance basis when they have not formally claimed it on the SA109, or they apply it in one year but not consistently across others. This inconsistency can lead to issues with loss relief, tax planning, or income disclosures.
If claiming this basis, it’s important to be able to distinguish between income remitted to the UK and that which remains offshore. Keeping clear records of bank transfers, receipts, and financial flows is key to justifying your claim if needed.
How Double Taxation Agreements Protect Against Being Taxed Twice
A major concern for many expats is the potential for the same income to be taxed both in the UK and in the country where it was earned. The UK has signed double taxation agreements with many countries to prevent this from happening.
These treaties determine which country has primary taxing rights over different types of income, such as pensions, employment income, interest, and dividends. They also allow for relief through tax credits, exemptions, or the ability to exclude income from one jurisdiction when it’s taxed in another.
To benefit from a double taxation agreement, you must identify which article of the treaty applies to your income type. You may need to submit a claim for relief, either through the UK tax return or via a separate form to HMRC. If your foreign income is taxed abroad and is also taxable in the UK, you can usually claim Foreign Tax Credit Relief through the SA106 to avoid paying tax twice.
In some cases, the treaty allows for an exemption at source, meaning you can avoid tax in the country of origin altogether if you provide proof of UK residency. This typically involves applying through that country’s tax authority with a certificate of UK tax residence obtained from HMRC.
What to Do If You’ve Made a Mistake on Your Tax Return
Even experienced taxpayers occasionally make errors. The good news is that HMRC allows amendments to be made within 12 months of the filing deadline. If you realise you’ve made a mistake in your Self Assessment—whether it involves income, reliefs, residency status, or missed supplementary pages—you can correct the return online or by submitting a paper amendment.
To do this, log into your HMRC online account, select the tax year in question, and choose the option to amend your return. Ensure you keep a record of the changes you make, as well as any supporting documentation.
If more than a year has passed, you cannot amend the return online, but you may still be able to submit an overpayment relief claim. This process is more formal and can take longer, but it allows you to recover overpaid tax where a valid reason exists.
Handling Enquiries and Communications from HMRC
If your return is selected for review, HMRC may write to you requesting clarification, supporting documents, or explanations of certain figures. These enquiries are not uncommon and don’t always indicate suspicion of wrongdoing. However, they must be taken seriously.
Respond to HMRC within the timeframe specified in their letter, and include all requested documents. This may include bank statements, tax certificates, rental agreements, or contracts. If you are unsure how to respond or whether your position is defensible, it may be sensible to seek advice from a tax adviser.
You should also check whether HMRC has correctly applied any foreign tax reliefs or residency claims you made. Errors in processing can happen, and it’s in your interest to identify and correct these early.
Keeping Digital and Paper Records When Abroad
Maintaining clear, accessible records is essential for anyone completing a tax return, but it’s especially important for expats who may be asked to support claims related to foreign income, tax credits, and residency status.
Keep digital or paper copies of foreign income documents, tax payment receipts, bank transfers, residency documents, property records, and correspondence with HMRC. In the event of a review or future amendment, having immediate access to your records will reduce the stress and complexity of resolving the matter.
HMRC requires that you retain records for at least five years after the 31 January submission deadline for the relevant tax year. In practice, it may be wise to hold onto key records even longer, particularly where long-term tax planning or residence status is involved.
Using Consistent Currency Conversions and Exchange Rates
One often-overlooked detail in expat tax returns is the consistent use of exchange rates when converting foreign income into pounds sterling. Discrepancies in conversion methods can result in errors or complications if HMRC reviews the return.
You may use HMRC’s official average yearly exchange rates, or the spot rate on the date the income was received. Whichever method you choose, be consistent throughout the return and keep a note of the rates used. Where large amounts of foreign income or gains are involved, showing evidence of how you converted amounts into sterling will strengthen your position if challenged.
Include any conversion losses or foreign exchange charges separately if they are relevant and clearly supported by documentation.
Keeping an Eye on Deadlines When Filing from Overseas
Living in a different time zone or managing life across countries can make it easy to lose track of UK tax deadlines. The key dates remain the same for expats: 31 October for paper returns and 31 January for online submissions. The payment deadline for any tax owed is also 31 January, with interest and penalties applying from 1 February.
If you believe you will miss a deadline, you should still submit the return or make a payment as soon as possible. In some cases, if you have a reasonable excuse, you may be able to appeal penalties. However, appeals are not always accepted, especially if HMRC believes you could have planned ahead or had sufficient time to act. Consider setting calendar reminders or filing early to avoid last-minute issues, particularly if you depend on information from foreign institutions or banks to complete your return.
Considering the Need for a Double Taxation Relief Claim
Sometimes you may be taxed in both the UK and the country where your income arises, even if a double taxation agreement exists. This can occur if the local tax authority taxes the income without applying the treaty, or if timing differences mean tax is assessed in different years.
In these cases, you may need to file a separate double taxation relief claim with HMRC, accompanied by supporting documents such as tax payment receipts, residency certificates, and proof of the income source. While more formal than a regular Foreign Tax Credit Relief claim, this process ensures you are not subject to unfair double taxation. Be aware that treaty relief claims can take time to process, and HMRC may require translations, bank statements, and confirmation of residency abroad.
Preparing for Future Tax Years While Living Abroad
If you plan to remain overseas for the long term, it’s worth developing a system to make future tax returns easier. Keep a record of significant events such as house sales, job changes, and relocations that might affect your residency or tax position. Save copies of previous returns and store your UTR and other login credentials securely.
Monitor changes in UK tax rules, particularly those affecting expats, pensions, and foreign income. New rules on reporting overseas assets or changes to tax thresholds can impact your return unexpectedly. Staying informed means fewer surprises when the next tax year ends.
Conclusion
Filing a UK tax return while living abroad can feel complex, but understanding the system and following a structured approach can make it much more manageable. Whether you’re an expat with income from property, savings, or foreign employment or you’re navigating residency rules for the first time — the key is to assess your situation early, determine the correct forms, and report your income accurately.
The statutory residency test is central to deciding your tax obligations. Even after leaving the UK, you may still be considered a resident depending on your ties, time spent in the country, and housing arrangements. Identifying your residency status correctly is essential, as it affects whether you are taxed on all worldwide income or just UK-based income.
Supplementary forms like SA106, SA108, and SA109 allow you to disclose overseas income, capital gains, and your residency details. Being familiar with what each form requires, and ensuring you include them when needed, is critical to staying compliant and avoiding penalties. So too is understanding how to claim relief on foreign tax paid or how to apply double taxation agreements to avoid paying twice on the same income.
Common mistakes can usually be avoided with careful record keeping, accurate currency conversion, and timely filing. If you do make an error, HMRC provides mechanisms to correct it whether through amending your return or submitting a relief claim. Being proactive and responsive to any follow-up from HMRC can also prevent minor issues from turning into bigger problems.
Ultimately, the best way to manage your tax obligations as an expat is to stay informed, organised, and aware of key deadlines. By doing so, you not only reduce the risk of penalties but also give yourself peace of mind knowing your finances are in order no matter where in the world you are.