Determining your residency status for UK taxes

Here's how to determine your residency status under the UK's Statutory Residency Tests (SRT), and the impact this could have on your tax bill. With the abolition of the remittance basis regime from April 2025, understanding your UK residency position has never been more important.

Why does residency matter?

Your UK tax residency status determines the extent to which you are liable to UK tax. If you are UK resident, you are generally subject to UK tax on your worldwide income and gains. If you are non-UK resident, you are generally only subject to UK tax on UK-source income and certain UK gains.

The end of the remittance basis — a major shift from April 2025

Prior to April 2025, non-UK domiciled individuals who were UK resident could elect to be taxed on the remittance basis, meaning they were only taxed on foreign income and gains brought into (remitted to) the UK. This regime has been abolished.

From 6 April 2025, the UK moved to a residence-based system. New arrivals to the UK who have not been UK resident in the previous 10 tax years can benefit from a four-year foreign income and gains (FIG) exemption, meaning their foreign income and gains are exempt from UK tax for their first four years of UK residence. After four years, worldwide income and gains are fully taxable in the UK. Those who were previously eligible for the remittance basis and do not qualify for the FIG exemption are now taxed on their worldwide income and gains. If you are affected by these changes, specialist advice is strongly recommended.

The Statutory Residence Test (SRT)

The SRT was introduced on 6 April 2013 and remains in force today. It consists of three tests applied in order:

1. Automatic Overseas Test

You are automatically non-UK resident if you meet any of the following:

• You were UK resident in none of the previous three tax years and are present in the UK for fewer than 46 days in the current tax year
• You were UK resident in one or more of the previous three tax years and are present in the UK for fewer than 16 days in the current tax year
• You work full-time overseas and are present in the UK for fewer than 91 days, with no more than 30 days spent working in the UK

2. Automatic UK Test

You are automatically UK resident if you meet any of the following:

• You are present in the UK for 183 days or more in the tax year
• Your only home is in the UK for at least 91 consecutive days, and you spend at least 30 days there during the year
• You carry out full-time work in the UK

3. Sufficient Ties Test

If neither automatic test applies, you must consider your UK ties alongside how many days you spend in the UK. The five possible ties are:

• Family tie – a spouse, civil partner, or minor child who is UK resident
• Accommodation tie – available accommodation in the UK that you use
• Work tie – you work in the UK for at least 40 days in the tax year
• 90-day tie – you spent more than 90 days in the UK in either of the previous two tax years
• Country tie – you spend more days in the UK than in any other single country (applies only to those who were previously UK resident)

The more ties you have, the fewer days you can spend in the UK without becoming UK resident.

Getting help

Residency status can be complex and the consequences of getting it wrong can be significant — particularly with the new FIG regime now in place. If you need help determining your residency status or understanding how the April 2025 non-dom changes affect you, our Private Client Tax team can guide you through the process.