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Will you have to pay UK Income Tax?

The UK Income Tax you'll pay depends on whether you're 'resident', 'ordinarily resident' or 'domiciled' in the UK. You can be more than one of these - or none.

Resident

• if you're in the UK for 183 days or more in a tax year, you're resident for that year for tax purposes
• if you come to live in the UK permanently or to remain for three years or more you're resident from the date of arrival
• you're also treated as resident if you're in the UK for an average of 91 days or more in a tax year - worked out over a maximum of four consecutive tax years

Ordinarily resident

• if you're resident in the UK year after year you will normally be treated as ordinarily resident
• you're treated as ordinarily resident in the UK from the date you arrive if it's clear that you intend to stay for at least three years
  

Domiciled

• your domicile is normally acquired at birth, but this is a general law concept covering a range of factors

• Download HMRC6 - 'Residence, Domicile and the Remittance Basis' Opens new window

What you'll pay Income Tax on

If you're both resident and ordinarily resident

You'll pay Income Tax on all your income from:

• work you do in the UK
• UK pensions
• UK investments

If you're UK domiciled you'll also pay tax on all your overseas income - but you may be entitled to a ten per cent deduction from the amount due on overseas pensions.

If you're not UK domiciled you'll usually pay tax only on overseas income you bring into the UK. But you'll pay tax on:

• all your earnings if you work overseas for a UK employer
• all your earnings if you do some work in the UK for an overseas employer
• 90 per cent of a pension from the Republic of Ireland - unless it's an Irish government pension and you are a UK national

Also read later section 'If you already pay tax on your overseas income'. There are special tax allowances for:

• seafarers who spend long periods outside the UK
• people who get overseas pensions
  

• Tax rules for UK resident seafarers Opens new window

• Download 'Pension Tax Relief and Individuals with International Interests' (PDF, 47K) Opens new window

• Help with PDF files

If you're resident but not ordinarily resident

If you're resident but not ordinarily resident you'll pay tax on all your UK income. You can usually pay tax only on overseas income you bring into the UK. But you'll pay tax on 90 per cent of a pension from the Republic of Ireland - unless it's an Irish government pension.

You'll pay tax on earnings for work done abroad that you bring into the UK.

If you're not resident

You'll pay tax on your income from:

• work you do in the UK
• UK pensions
• UK investments
• rental income from UK property

You won't pay tax on your overseas income even if you bring it into the UK.

Income Tax allowances

All UK residents get personal tax-free allowances to reduce their tax.

• Personal Allowance

• Find out more about Income Tax

• Download HMRC6 'Residence, Domicile and the Remittance Basis' Opens new window

Do you need to complete a tax return?

If the income you pay tax on is more than your allowances, you may be able to pay the tax through PAYE (Pay As You Earn) if you're employed. If you're not employed, you'll need to complete a tax return.

• Do you need to complete a tax return?

Coming into the UK part way through the year

When you come to the UK part way through a tax year you'll normally only pay tax on income you get after you arrive if:

• you come to the UK to stay for at least two years or to take up permanent residence
• you weren't ordinarily resident in the UK before you arrived

Otherwise you may have to pay UK tax on your income for the whole year. Either way, you'll always get your full year's Personal Allowance.

If you already pay tax on your overseas income

The UK has 'double taxation agreements' with many other countries to make sure that you don't pay tax twice on the same income.
Even if there's no agreement, you can usually still claim a reduction for any overseas tax you've paid.

• Tax on foreign savings and investment income

More useful links

• Coming to work in the UK

• Casual, part-time, temporary workers - tax and National Insurance

• Working and paying tax

• Self Assessment for non-residents Opens new window

Useful contacts

• Money, tax and benefits contacts