Plain-English explanation of split-year cases, obligations, and what to give your tax adviser.
In the tax year you leave (or arrive in) the UK, you may be treated as UK-resident for only part of that tax year. This is called split-year treatment. It means you only pay UK Income Tax on foreign income arising in the UK part of the year.
Split-year treatment is not automatic — you must claim it on your Self Assessment return using supplementary pages SA109 (Residence, remittance basis etc.).
Split-year can apply when leaving the UK (Cases 1–8) or arriving in the UK. This guide covers the three cases that apply to most UK expats leaving to live abroad:
Who it applies to: You leave the UK to take up full-time employment abroad. You work at least 35 hours/week overseas and spend fewer than 91 UK days in the year of departure (with no more than 30 working days in UK).
Key condition: The overseas work must be full-time and not combined with significant UK duties. "Full-time" means an average of 35 hours per week overseas (averaged over a 365-day "overseas work period").
SA109 boxes: Box 13 (Case 3 split year), Box 14 (start of overseas part), Box 6 (non-resident employment income).
Who it applies to: Your spouse/civil partner or cohabiting partner leaves the UK to work full-time abroad (Case 3 applies to them), and you leave to join them during the same or following tax year. You have no significant UK ties once you leave.
Key condition: You must not be in full-time work yourself, and your reason for going abroad must be to accompany or join your partner. You must spend fewer than 91 days in the UK in the year of departure.
SA109 boxes: Box 13 (Case 4 split year), Box 14 (start of overseas part).
Who it applies to: You leave the UK to live abroad — not specifically to work — and you have no home in the UK after leaving. This is the most common case for expats who retire abroad or relocate for lifestyle reasons.
Key condition: You must cease to have a UK home after departure. You must spend fewer than 16 UK days in the rest of the tax year after leaving (if you had a UK home). After 5 April, normal non-resident SRT day counting applies.
SA109 boxes: Box 13 (Case 8 split year), Box 14 (start of overseas part), Boxes 22–26 (UK income as non-resident).
| Income type | UK part of year | Overseas part (non-UK resident) | Notes |
|---|---|---|---|
| UK employment income | UK Income Tax | UK Income Tax | UK PAYE always applies to UK employment, regardless of residence |
| Foreign employment income | UK Income Tax | Exempt (split year) | In overseas part, foreign earned income is outside UK tax scope |
| UK State Pension | UK Income Tax | UK Income Tax | Always taxed in UK. DTA may give exclusive taxation rights to destination |
| UK occupational pension | UK Income Tax | Usually UK tax | Check DTA — some countries have sole-taxing rights over pension paid to residents |
| UK rental income | UK Income Tax | UK Income Tax | NRLS deduction applies unless HMRC approval. File SA105. |
| UK bank interest | UK Income Tax | UK Income Tax | Taxed in UK. Personal savings allowance still applies. |
| UK dividends | UK Income Tax | Usually UK tax | Most DTAs preserve UK right to tax dividends (often at reduced rate) |
| Foreign dividends / interest | UK Income Tax | Exempt (split year) | In overseas part, foreign investment income is outside scope |
| ISA income | Tax-free | Tax-free (existing ISAs) | Cannot contribute new money to ISA as non-resident |
| Capital gains — UK property | UK CGT | UK CGT applies | Non-residents must report UK residential property CGT within 60 days |
| Capital gains — other UK assets | UK CGT | Exempt (if sold as non-resident) | HMRC temporary non-residence rules: if you return within 5 years, gains may be reassessed |
Complete HMRC form P85 "Leaving the UK and tax". Notify all UK pension providers of overseas address. Consider timing of asset disposals (before vs after departure for CGT purposes).
File SA100 (main form) + SA109 (residence) by 31 January following the tax year end. Claim split-year relief in Box 13. Enter departure date in Box 14.
Box 6: Non-resident foreign income · Box 13: Split-year case number · Box 14: Date overseas part begins · Box 15: UK days in overseas part · Box 16: UK days in SRT tie-breaker year.
Apply using form NRL1 to receive rent gross (agent pays rent without withholding tax). HMRC will adjust your tax code or assess via SA. File SA105 for rental income each year.
Must report within 60 days of completion using the UK Property Return (HMRC online). This is separate from your annual SA return.
File SA100 + SA109 annually if you have UK-source income. Most common: rental, pension, dividends. Keep travel diary (UK night counts) contemporaneously.
If you return to UK within 5 tax years, HMRC can reassess gains made on non-UK assets during the overseas period. Keep records and seek advice before returning.
Complete this section and hand to your UK tax adviser along with this briefing:
| Taxpayer name | |
| UTR (Unique Taxpayer Reference) | |
| NI Number | |
| Departure date | |
| Tax year of departure | |
| Destination country | |
| DTA with UK? | |
| Split-year case (if known) | |
| UK income sources after departure | |
| UK property owned? | |
| Estimated UK days in year of departure | |
| Key concerns / questions for adviser |
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