Best Tax Tips for Overseas Nationals in the UK

From April 2025 UK has abandoned its UK tax regime based on domicile and specific UK tax concessions based on UK non-domiciled status.

The UK tax regime is now based on UK tax residence. 

UK Statutory residence test (SRT) remains relevant to the current UK tax code.

I am sharing 7 best tips for overseas nationals in the UK.

The 7 Tips for Overseas Nationals in the UK:

1. Seek Professional UK Tax Advice before you Relocate or Start Spending More Time in the UK

The UK is a sophisticated international tax jurisdiction and the earlier you start planning your relocation to the UK, the better.

Indeed one of the most popular services over the years has been the request to assess whether one becomes involuntarily a tax resident in the UK by virtue of spending more time in the UK. Remember that more frequent travel to the UK may create UK tax liability for your worldwide income and capital gains. Therefore, it is never too early to have an early UK tax assessment to be carried out.

Our offer Your Bespoke Global Wealth Strategy with the Emphasis on UK Taxation allows you to tackle a number of multiple issues all at once, such as frequently asked questions:

• • What is the correct UK immigration category for me, my family or business?
  • Should I become a tax resident in the UK? If so, what are the implications if I do?
  • Do I need to use an SPV (special purpose vehicle) as I move, operate and invest in the UK?
  • How do I preserve my family trust, business and fiduciary structures while I move, operate or invest in the UK?
  • How can I save on FOREX costs, banking fees and levies each time I make a high value transaction in multiple currencies internationally?

This offer is ideal for you if:

• • Your net worth is over £10M GBP;
  • Group of assets or investments are in excess of £5M GBP;
  • Your assets are unencumbered and are free from loan and debt relationships and claims.

A lot of my clients ask me in disbelief:

“Why do you say I am a UK tax resident while my visa doesn’t say the same.”

Yes. This realisation may come as a surprise. However, it does not mean that you may not be caught out as easily.

2. Monitor Your Initial UK Tax Advice Throughout the Years

The UK tax landscape changes very frequently several times a year and you need to be always watchful. 

Sometimes, it is really difficult to stay on top and understand that a lot of legal and tax changes come about and do so continuously.

You may wish that nothing changes for the last 20 years, but things may change on a daily basis without a warning.

Therefore, it is your responsibility to monitor the changes and be on great terms with your trusted professional tax advisor.

3. Check Whether You Can Benefit from specific UK Tax exemptons

You also need to monitor the changes in your worldwide income and capital gains. 

Depending on your UK tax status you may still be eligible for Overseas Day Relief (OWR) or 4-year Foreign Income and Gains (FIG).

These specific UK tax exemptions are limited in time and you need to be able to benefit as you start your UK residence or resume it after 10 years overseas.

From 2025, the FIG replaced the remittance basis of taxation rules.

The FIG is only valid for the first 4 years of UK tax residence.

4. Work with your UK Tax Advisor and Start Preparing Your UK Tax Return Early

There are at least 2 advantages of starting to work early on your UK tax return:

• • Learning about your UK tax liability early on;
  • Opting for paper tax returns instead of the electronic one.

Once you submit your UK tax return, you will need to make sure that you pay tax for the tax year before 31 January. If your tax liability is a more substantial one, you will also be requested to pay the balancing payments for the next tax year.

You will need to pay half of your tax liability of the assessed tax liability until the 31st January and the next half until the 31st July.

Through the balancing payments you pay UK tax for the subsequent tax year during that tax year. For instance, you were assessed to pay 2X for the tax year ended 2026 before 31st January of 2027. You will pay 2X + X before the 31st January 2027 and before the 31st July 2027, you will pay the remaining X. 

Therefore, you will need to know your UK tax liability before you are asked to pay any of the tax and balancing payments that are due. Sometimes you will need to budget to meet such financial obligations and avoid any penalties.

There are advantages to filling out the paper tax returns instead of the electronic filing. For instance, your tax affairs are a bit more complicated and the latest electronic software is simply not up to speed.

For instance, it is not possible to claim remittance basis of taxation when filling out UK tax returns directly through HMRC portal.

Therefore, you may be better off utilising the paper format instead. The deadlines are important to keep in mind.

The deadline for the paper format is 31st October and for the electronic one is the 31st January.

Therefore, if you are looking to submit your UK tax return for 2026, your deadlines will be 31st October 2026 and 31st January 2027 respectively.

5. Make Use of the Overseas Day Relief

Overseas day relief is available during the first 3 years of residence in the UK. It is a very useful tool to regularise your financial affairs before you move to the UK permanently. Overseas day relief only applies to persons who work.

For instance, an overseas company sends you to work in the UK, while you still have obligations with your old employer in the previous country of residence.

By claiming remittance basis of taxation, you are able to keep the proceeds of your old job and employer in the previous country of residence (if you do not need this income in the UK) and only pay UK tax on your current job and the duties performed in the UK.

You will need specialist UK tax advice to be able to arrange this properly and not to cause any issues for yourself in the future.

From 2025, you are only eligible for OWR if you are also eligible and opting for the FIG.

6. Avoid Mixed Funds 

Before you moved to live in the UK, you may have paid little attention to the different types of funds arriving to your bank account. For example, you may have saved capital, employment income, dividends and proceeds of sale all arriving to the same bank account.

Sometimes, it is difficult to convince the clients as well as their private bankers that for UK tax purposes you need individual bank accounts to receive the income and gains from multiple different sources, such as:

• • Capital;
  • Interest income;
  • Employment income;
  • Dividends;
  • Taxed income;
  • Non-taxed income;
  • Taxed capital gains;
  • Non-taxed capital gains;
  • Proceeds of sale.

Depending on your individual circumstances, this list may go on indefinitely. 

Swiss private banks based in Switzerland were some of the best examples who were able to adapt and implement UK tax rules for the benefit of their UK resident and non-domiciled clients.

7. Beware of CRS and Avoid UK Tax Evasion Schemes

CRS stands for Common Reporting Standards. This piece of legislation makes it mandatory for tax authorities to exchange information about their taxpayers. Therefore, UK tax authorities receive tax information about its residents from the tax authorities based overseas.

It may happen that you may receive a letter from UK tax authorities based on the information received from their overseas counterparts that you have not disclosed your all worldwide income.

You have nothing to worry about if you elected to claim FIG.

However, you will still need to engage with the UK tax authorities and ask your UK tax advisor to cooperate with them on your behalf.

During this time you may wonder if you ever did anything wrong by opting to be taxed on remittance basis or FIG (from 2025) as letters from authorities may appear scary and need to be taken care of accordingly.

However, you may rest assured that the remittance basis of taxation or FIG (from 2025) is a specific exception permitted by law and not a UK tax evasion scheme.

In contrast, UK tax evasion schemes are designed to take advantage of the loopholes in the law. 

Sometimes, you may be going about your day and not realising that you were sold a UK tax evasion scheme. This may happen as you are new to the system and simply not aware what to look out for and how to distinguish legal tax planning from a tax evasion scheme.

It is always good to ask the right questions and seek appropriate specialist advice. It is a requirement for the unauthorised tax schemes to be registered.

Overseas Nationals Can Still Benefit from Preferential UK Tax Treatment 

From 2025 remittance basis of taxation is replaced with FIG.

Although, the whole UK tax regime was abandoned, the new  UK rules still offer limited concessions for individuals who take on tax residence in the UK.

There are clear advantages of starting working on your UK tax planning before you relocate to the UK or start spending more time in the UK.

There are also advantages in preparing your UK tax return as early as possible and before the due deadline.

Consult the Expert

Book a call with me to discuss your Global Wealth Strategy and UK tax planning options that may be available to you.

This may also include global wealth, asset protection and structuring of global assets before you relocate to the UK.

You may submit your enquiry here.

Saule Voluckyte, M.A.E.S, LL.B, FAIA

I have been working exclusively with UHNWI in Mayfair, London since January 2008. I built specialist knowledge and expertise required to serve ultra high net worth individuals investing, operating and relocating to the UK or Switzerland.

Within the industry, I am the single adviser who is able to traverse the different areas of expertise and bring a comprehensive approach across: global structuring, UK immigration, international taxation and FOREX to develop their global wealth strategy, while they build, grow and expand their wealth worldwide.

Previous experience as one of the senior advisors for the government, made me a go-to person when delicate and uncomfortable scenarios involving heads of state need to be handled with care and preserve privacy.