What are the statutory residence test rules for determining UK tax residency when emigrating?
Executive summary
The core rules for deciding UK tax residence when emigrating are set by the Statutory Residence Test (SRT): three ordered tests — automatic overseas, automatic UK, then the sufficient‑ties test — applied to each tax year and counting days present at midnight (183 days is a clear UK resident trigger) [1] [2]. Split‑year treatment can apply when you leave or arrive mid‑year; special temporary non‑resident and returning‑resident rules (including the temporary non‑residence CGT rules) affect emigrants who return within set periods [3] [4].
1. The rules you must apply in order — a legal checklist
When you emigrate you must apply the SRT in strict sequence for each UK tax year: first see if any automatic overseas test makes you non‑resident; if not, check the automatic UK tests (for example 183+ days, a UK-only home, or full‑time UK work); if neither applies, use the sufficient ties test which matches your number of UK ties against days spent in the UK [2] [5]. GOV.UK’s RDR3 note and other practitioner briefings emphasise that the SRT treats each tax year separately and counts presence at midnight as a ‘UK day’ for most purposes [1] [6].
2. Day counting, ties and what “home” means in practice
Day counting matters: fewer than 16 days in a tax year will usually make you automatically non‑resident if you were UK resident in one of the previous three years (other thresholds apply for long absences) [7] [2]. The sufficient ties test looks at family, accommodation, work, 90‑day UK visits in either of the previous two tax years, and country‑tie; whether a property counts as a “home” is fact‑sensitive — HMRC and commentators note disputes over when a house is “nothing more than a holiday home” [6] [8].
3. Split‑year treatment: you can be part‑resident, part‑non‑resident
If you emigrate partway through a tax year, split‑year treatment can allocate part of the year as UK resident and part as non‑resident. This affects whether income/gains are taxed while abroad and can be decisive for someone leaving mid‑year [3] [6]. Specialist advisers stress split‑year rules are detailed; for some post‑2025 measures (FIG and IHT rules) split years may be counted as full UK residence for eligibility or long‑term status purposes [9].
4. Returning within short windows: temporary non‑residence and CGT
If you cease UK residence but return within certain periods, temporary non‑residence rules can still charge UK tax on gains made while abroad — HMRC’s HS278 helpsheet sets out scenarios for returns in 2024–25 and explains how some returning taxpayers remain within scope if they come back within the prescribed window [4]. Practitioners therefore warn emigrants that simply leaving without satisfying the SRT’s overseas tests is not always enough to avoid future UK charges [4].
5. How the 2025 reform changes the wider context for emigrants
From 6 April 2025 the UK abolished the historic non‑dom/remittance basis and shifted many consequences to residency status: new Foreign Income and Gains (FIG) and IHT measures depend on SRT residency and on whether someone is a “long‑term resident” (e.g., 10 years) — meaning residence status when leaving now has longer tail effects for IHT and eligibility for FIG relief when returning [10] [11] [12]. Advisers flagged that the new residence‑focused regime increases the stakes of SRT determinations when emigrating or returning [13] [14].
6. Common pitfalls and contested areas
Practical traps include miscounting days (midnight rule and transit exceptions), misunderstanding what counts as a permanent “home” in the UK, and underestimating the effect of prior years’ residence on day thresholds and ties [6] [8]. Court decisions have broadened the scope for “exceptional circumstances” in some day‑counting rules, making outcomes less certain and increasing the need for documented evidence if challenged [14] [15].
7. What sources disagree on and where reporting is silent
Official guidance (GOV.UK RDR3) provides statutory mechanics and day‑count rules while professional firms focus on practical consequences: interpreting “home” and applying tie‑tests is where advisers frequently differ in emphasis [1] [2] [8]. Available sources do not mention precise tactical formulas for emigrants to guarantee non‑residence beyond the statutory tests — they instead recommend careful application of the SRT and, where relevant, consideration of the 2025 FIG and IHT reforms [3] [9].
8. Practical takeaway for anyone planning to emigrate
Apply the SRT year‑by‑year: count UK days, map your UK ties, and determine whether an automatic overseas test applies; if you expect to return within a few years, check temporary non‑residence CGT rules and the 2025 FIG/IHT reforms; and secure professional advice because split‑year, “home” and tie assessments are fact‑sensitive and contested [1] [4] [12].