Returning to the UK: what happens to tax?
Clear UK tax advice when moving back to the UK: split-year treatment, the 4-year FIG regime, and bringing money home.
Short answer: When you move back to the UK, your worldwide income becomes taxable again. But with proper timing and split-year claims, your foreign income before your move date stays tax-free. Matthew plans your return date and files your split-year return so you keep what you earned abroad.
Key points
- Split-year claims protect foreign salary earned before your arrival date.
- If you lived abroad for 10+ years, the new 4-year FIG regime can exempt foreign income.
- Returning within 5 years can trigger back-taxes on assets sold abroad.
- Transferring your accumulated savings into the UK is generally not taxable.
- Matthew reviews your investments and timing before you land.
The year you return: split-year relief
You do not have to wait until 6 April to move back to the UK. Under split-year treatment (Cases 4 to 8 of the Statutory Residence Test), HMRC splits the tax year into two parts.
The overseas part (before your arrival) is treated as non-resident, meaning your foreign earnings stay free of UK tax. Only income from the UK part onwards is taxable in Britain.
The 4-year foreign income and gains (FIG) regime
From 6 April 2025, the old remittance basis was replaced by the 4-year Foreign Income and Gains (FIG) regime. If you were non-UK resident for at least 10 consecutive years before returning, you can bring foreign income and investment gains to the UK completely tax-free during your first 4 resident years.
Plan your move back to the UK without tax surprises...
Matthew reviews your bank accounts, foreign pensions, and property timing before your flight, ensuring you claim every allowable relief under split-year and FIG rules.
Written and reviewed by Matthew S Manderson CTA ATT AMIT
Chartered Tax Adviser (CTA), Association of Taxation Technicians (ATT), Association of Malta International Taxation (AMIT). General guidance only; tax treatment depends on individual facts.