Expert Relocating to the UK Tax Guide: 10 Essential Tips for New Residents

Relocating to the UK Tax Guide: Everything About Visa, Residency & Tax Planning

Moving to the UK is an exciting prospect, but let’s be honest—it can also feel overwhelming. Between sorting out visas, understanding the British tax system, and managing all the practical details, there’s a lot to think about. That’s exactly why I put together this relocating to the UK tax guide.

Whether you’re planning to work in London, start a business in Manchester, or retire somewhere in the countryside, getting your tax and immigration sorted early makes everything easier. I’ve seen too many people rush the process and end up with headaches they could have avoided.

What follows is practical advice based on what actually matters when you’re relocating. Think of it as the conversation you’d have with someone who’s been through it all before. There’s information on visa pathways, the quirks of UK tax residency, what to do with your assets back home, and those annoying little details like school applications that can catch you off guard if you’re not prepared.

This involves considering both immigration and tax matters. Preparations should include efficiently organising their personal and financial affairs both in the UK and abroad, tailored to their family’s specific situations and requirements. Every person will benefit from personalised advice well ahead of their move to the UK, which is why I have created a guide to provide a summary of key points for their planning, which is why 10 tips are necessary.

While this guide serves as a general overview to help ensure that crucial aspects are not overlooked during the planning process, it addresses the practical matters that need to be taken into account before moving. It outlines the UK visa options worth considering, explains residency status along with the three components of the statutory residence test, details the three classifications of domicile and their implications for relocating to the UK, and clarifies the remittance basis and its effect on inheritance tax.

Furthermore, it includes guidance on the logistics of moving to the UK, such as timing, how to assess your current assets and capital gains, options for establishing a bank account and purchasing property in the UK, and estate planning. It also clarifies the connections between the UK’s immigration and tax systems, which are crucial to understand.

If you would prefer to speak to someone about immigration, I would recommend that you get in touch with immigration lawyers in London. Here you will find some of the best solicitors, and as they are from the UK, they can walk you through the process of application that they are extremely familiar with already.

We trust that you will find this guide beneficial.

Understanding the UK Tax System:
A Complete Relocating to the UK Tax Guide

The UK Tax Year Isn’t What You Think

Here’s something that trips people up right away: the UK tax year runs from April 6th to April 5th. I know, it seems random, right? Most countries just use the calendar year, but Britain has its own way of doing things.

Why does this matter? Well, if you’re not aware of it, you might miss important deadlines and end up with fines from HMRC (that’s the UK tax authority). The best advice I can give you is to talk to a tax advisor before December 31st of the year before you plan to move. This gives you time to plan things properly and avoid any nasty surprises.

Trust me, getting ahead of the UK tax year calendar will save you money and stress in the long run. It’s one of those things where a little preparation goes a long way when you’re planning your UK relocation.

Getting Your Visa Right (Because It Really Matters)

Explore the various immigration pathways available. Review these thoroughly and ensure you possess the correct visa. You must have the right visa, as if you apply for a tourist visa or a dependant visa and don’t have the authorization to work, you will be asked to leave the country.

Even the UK had something like this for a while, and other countries definitely still do. Make a list of what you need to close out or transfer—tax registrations, social security, official addresses, that sort of thing. It’s not the most exciting part of moving abroad, but sorting these exit tax considerations now prevents headaches later.

Have You Missed Anything?

When you’re caught up in planning your move to the UK, it’s easy to forget about what you need to do back home. But here’s the thing—some countries have exit taxes or require you to complete certain procedures before you leave.

Check if your home country has any departure taxes or emigration requirements. You don’t want to get hit with unexpected fines or complications down the line. Even the UK had something like this for a while, and other countries definitely still do.

Make a list of what you need to close out or transfer—tax registrations, social security, official addresses, that sort of thing. It’s not the most exciting part of moving abroad, but sorting these exit tax considerations now prevents headaches later.

Bank Accounts: You’ll Probably Need More Than One

Most people moving to the UK end up needing multiple bank accounts. You’ll want a UK account for your life here—paying rent, utilities, getting your salary if you’re working. But you might also need to keep an account in your home country, especially if you still have income or assets there.

Give your current bank a heads-up that you’re moving. Some banks have restrictions on accounts for non-residents, while others are fine with it. And start researching how to set up a UK bank account—some banks let you do this before you arrive, which can be really helpful.

The whole banking setup affects your tax situation too, especially when it comes to UK residency status and how your international income is treated. It’s worth getting advice on this because there are ways to structure things that work better from a tax perspective.

What About Your Trusts, Investments, and Other Assets?

Do you have any trusts, foundations, or companies? These will need to be assessed to establish whether or not you need to pay tax in the UK. Some countries are completely fine with you earning money abroad and then spending it in their country without being taxed, but it’s all dependent on where the money and the form of asset it comes from. It would be recommended to ask for and look into some legal help to establish.

UK Property Options: Renting vs Buying for New Residents

Are you planning to rent or purchase a property? You’ll need to weigh your funding and tax alternatives.

Make Sure Your Work Arrangements Fit Your Visa

Whatever job or business setup you have planned needs to match your visa type exactly.

Evaluate your business and job arrangements whole ensuring it adheres to the visa type you have.

Schools and Family Arrangements (Start Early)

If you are bringing your family with you, make sure to make school arrangements well before September. As the school term starts, you will need to apply at least 3+ months before, or you may be forced to send your child to a school that is not where you wanted. Avoid disappointment by getting these planned and ironed out as soon as possible.

Domicile vs Residency: Key Differences in Your Relocating to the UK Tax Guide

Understand your domicile status and its consequences—this differs from residency or immigration status.

Do You Have a UK History?

If you’ve been a UK resident before—even years ago, maybe as a student—it can affect your tax position now. Previous UK residency isn’t just ancient history; it actually matters for things like the statutory residence test and deemed domicile rules. Time spent as a student counts toward the years that determine deemed domicile status.

If you wish to discuss your relocation to the UK in more detail, please feel free to reach out to a relevant company that specialises in tax and accounting to help with your adjustment to the UK tax world.

Photo by Altaf Shah