You usually have to pay tax on your UK income even if you’re not a UK resident. Income includes things like:

  • pension
  • rental income
  • savings interest
  • wages

If you’re eligible for a Personal Allowance you pay Income Tax on your income above that amount. Otherwise, you pay tax on all your income.

The country where you live might tax you on your UK income. If it has a ‘double-taxation agreement’ with the UK, you can claim tax relief in the UK to avoid being taxed twice.

You do not normally pay tax when you sell an asset, apart from on UK property or land.

When tax is not due or is already deducted

Non-residents do not usually pay UK tax on:

  • the State Pension
  • interest from UK government securities (‘gilts’)

If you live abroad and are employed in the UK, your tax is calculated automatically on the days you work in the UK.

Income Tax is no longer automatically taken from interest on savings and investments.

When to report your income to HM Revenue and Customs (HMRC)

You usually have to send a Self Assessment tax return if:

You do not need to report your income to HMRC if you’ve already claimed tax relief under a ‘double-taxation agreement’.

Sending a Self Assessment tax return

You cannot use HMRC’s online services to tell them about your income if you’re non-resident. Instead, you must do one of the following:

You’ll be fined if you miss the deadline - it’s earlier if you’re sending your return by post (31 October).

If you have overpaid

Apply for a refund if you think you’ve paid too much tax. This might happen if tax is deducted automatically (for example by your bank) but your total UK income is below your Personal Allowance.

Send form R43 to HMRC, or claim the refund in your Self Assessment tax return if you’re already doing one.

HMRC will usually send refunds by cheque. If you want HMRC to send a refund straight to your bank account, include your bank account number and sort code on your tax return. You need to include this information each time you complete a tax return.

Get help from a professional (like an accountant) if you need advice.