United Kingdom expat tax guide
Europe · how a foreigner who moves to United Kingdom is taxed · 2026 · Mixed
If you move to United Kingdom, you become a tax resident when statutory Residence Test (automatic tests + sufficient-ties test); 183+ days is automatically resident but residence can trigger on fewer days via ties. As a resident you are taxed on a mixed basis — From 6 April 2025 the old domicile/remittance basis was abolished; a qualifying new arrival pays no UK tax on foreign income/gains for 4 years under the FIG regime, then moves to full worldwide taxation from year 5. The top personal income tax rate is 45%. A foreign pension is treated as: Taxable as worldwide income for UK residents (treaty may reassign taxing rights); exempt under the FIG regime for qualifying new arrivals in their first 4 years. United Kingdom also offers the 4-year Foreign Income and Gains (FIG) regime regime, which can sharply change this picture. It has a US tax treaty and has a US totalization agreement. Overall it reads as mixed for an inbound mover. General information, not tax advice — verify with United Kingdom's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
United Kingdom expat tax at a glance
| Question | United Kingdom (2026) |
|---|---|
| When you become tax resident | Statutory Residence Test (automatic tests + sufficient-ties test); 183+ days is automatically resident but residence can trigger on fewer days via ties |
| Residency day-count trigger | 183 days |
| How residents are taxed | Mixed — From 6 April 2025 the old domicile/remittance basis was abolished; a qualifying new arrival pays no UK tax on foreign income/gains for 4 years under the FIG regime, then moves to full worldwide taxation from year 5. |
| Top personal income tax rate | 45% |
| Foreign pension treatment | Taxable as worldwide income for UK residents (treaty may reassign taxing rights); exempt under the FIG regime for qualifying new arrivals in their first 4 years |
| Foreign capital gains / dividends | Worldwide gains/dividends taxable for UK residents; 0% under the FIG regime for qualifying new arrivals in their first 4 years |
| Special expat / non-dom / retiree regime | 4-year Foreign Income and Gains (FIG) regime |
| US income tax treaty | Yes |
| US social-security totalization | Yes |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for United Kingdom, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to United Kingdom
The first thing that matters is tax residency: statutory Residence Test (automatic tests + sufficient-ties test); 183+ days is automatically resident but residence can trigger on fewer days via ties. The 183-day line is the headline trigger, but a home, family or business ties can make you resident sooner — so counting days alone is risky.
Once resident, United Kingdom taxes your worldwide income, so income earned abroad is in scope unless a treaty or special regime says otherwise. The top 45% rate only bites at the highest income band — an average earner pays less.
Foreign pensions and investments
Foreign pension: Taxable as worldwide income for UK residents (treaty may reassign taxing rights); exempt under the FIG regime for qualifying new arrivals in their first 4 years. Foreign capital gains and dividends: Worldwide gains/dividends taxable for UK residents; 0% under the FIG regime for qualifying new arrivals in their first 4 years. These outcomes can be overridden by a double-tax treaty, which decides whether the source country or United Kingdom taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
The 4-year Foreign Income and Gains (FIG) regime regime
In force since 6 April 2025 (replacing the abolished non-dom remittance basis). New UK residents who were non-UK-resident for the prior 10 consecutive tax years pay 0% UK tax on foreign income and gains for their first 4 tax years. Trade-off: claimants lose the personal allowance and CGT annual exempt amount for any year claimed; from year 5 they are taxed on worldwide income.
Special regimes have eligibility tests, time limits and sunset dates that change frequently. Treat the summary above as a starting point and verify the current terms with United Kingdom's tax authority before relying on it.
US citizens and social security in United Kingdom
| Question | United Kingdom |
|---|---|
| US income tax treaty? | Yes |
| US social-security totalization agreement? | Yes |
| Tax basis for residents | Mixed |
| Top personal income tax | 45% |
A US tax treaty with United Kingdom helps reassign taxing rights and reduce withholding, and US citizens lean on the Foreign Earned Income Exclusion and Foreign Tax Credit to avoid double income tax. A totalization agreement means you generally pay social-security contributions to only one of the two countries. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to United Kingdom
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| United Kingdom (this country) | Mixed | 45% | 4-year Foreign Income and Gains (FIG) regime |
| Japan | Mixed | 45% | Non-permanent resident remittance basis |
| South Korea | Mixed | 45% | 19% flat tax for foreign workers |
| Estonia | Worldwide | 22% | None |
| Czech Republic | Worldwide | 23% | None |
| Croatia | Worldwide | 33% | Returning-emigrant 5-year exemption |
Frequently asked questions
When do you become a tax resident of United Kingdom?
Statutory Residence Test (automatic tests + sufficient-ties test); 183+ days is automatically resident but residence can trigger on fewer days via ties. The headline trigger is 183 days. Once resident, United Kingdom taxes you on income on a basis that depends on your status (see the profile). This is general information for 2026, not tax advice — verify with the official authority.
How does United Kingdom tax a foreign pension?
Taxable as worldwide income for UK residents (treaty may reassign taxing rights); exempt under the FIG regime for qualifying new arrivals in their first 4 years. Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
What is the 4-year Foreign Income and Gains (FIG) regime regime in United Kingdom?
In force since 6 April 2025 (replacing the abolished non-dom remittance basis). New UK residents who were non-UK-resident for the prior 10 consecutive tax years pay 0% UK tax on foreign income and gains for their first 4 tax years. Trade-off: claimants lose the personal allowance and CGT annual exempt amount for any year claimed; from year 5 they are taxed on worldwide income. It is a headline summary for 2026; conditions and sunset dates change, so verify the current rules with United Kingdom's tax authority.
Is United Kingdom good for US citizens or retirees?
United Kingdom has a US income tax treaty and has a US social-security totalization agreement. The totalization agreement means you generally pay social-security contributions to only one country. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for United Kingdom compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Top rate 45% in England, Wales and Northern Ireland (over GBP 125,140); Scotland has a 48% top rate. The UK uses the SRT, not a simple 183-day rule — residence can trigger on as few as 16-46 days via ties. US treaty + totalization (1985). Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with United Kingdom's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21