UK Non-Resident Tax 2026/27: What Changes When You Leave
Quick answer
Non-residents still pay UK tax on most UK income, including wages for work done in the UK, rental income, and gains on UK property. Dividends and interest can fall under the disregarded income rule, and you can keep an ISA open but cannot pay new money into it once you stop being a UK resident.
How UK income and assets are taxed if you are non-resident
| UK income or asset | How it is taxed if you are non-resident |
|---|---|
| UK employment income | Taxed on the days you actually work in the UK. Tax is calculated automatically on those UK workdays. |
| UK rental income (Non-resident Landlord Scheme) | Your letting agent or tenant deducts basic rate tax from the rent (after allowable expenses) unless HMRC approves form NRL1i to let you receive it gross and pay through Self Assessment. A tenant paying more than GBP 100 a week with no agent must deduct the tax. |
| UK dividends and interest (disregarded income rule) | Can be treated as disregarded income. Your liability is then limited to any tax already deducted or the tax credit it carries, but you get no Personal Allowance against it. Applies if you are non-resident for the whole tax year. |
| UK private pension | Generally taxable in the UK, though a double-taxation agreement with your country of residence may change where it is taxed. |
| UK State Pension | You do not usually pay UK tax on the State Pension if you are non-resident. |
| Capital gains on UK residential property (non-resident CGT) | Reportable to HMRC even if there is no tax to pay or you made a loss. You must report and pay within 60 days of completion (30 days for completions between 6 April 2020 and 26 October 2021). |
| ISA | You can keep an existing ISA open and it stays tax-free, but you cannot pay new money in once you stop being a UK resident. You must tell your ISA provider when you stop being resident. |
Becoming non-resident does not switch off your UK tax. It changes which slices of income and which assets HMRC can still reach. Most UK-source income stays in scope, but the way it is taxed shifts: some is collected at source before you see it, some can be capped under a special rule, and some is barely touched at all. The table above maps each common UK income or asset to how it is treated once you are non-resident.
Two mechanisms do most of the work. The Non-resident Landlord Scheme pushes the job of deducting tax on to your letting agent or tenant, while the disregarded income rule can cap your liability on UK dividends and interest at the tax already taken off, at the cost of giving up the Personal Allowance against that income. Selling a UK home brings its own clock: non-resident capital gains tax must be reported within 60 days of completion, even when no tax is due.
Whether these rules apply at all depends on your residence status, which is set by the Statutory Residence Test - start with the pillar, UK tax residency explained. Before you leave, the P85 HMRC form for leaving the UK tells HMRC you have gone, and if you are drawing a pension abroad, taking a UK pension when moving abroad covers where it is taxed.
Frequently asked questions
Do non-residents pay UK tax?
Yes, on most UK income. That includes wages for work done in the UK, rental income, and gains on UK property. Some income, such as the State Pension, is usually not taxed, and dividends and interest may fall under the disregarded income rule.
Do I pay capital gains tax if I am non-resident?
You pay non-resident capital gains tax when you sell UK property or land. You must report the disposal to HMRC even if there is no tax to pay or you made a loss, and you must report and pay within 60 days of completion.
Can I keep my ISA if I move abroad?
Yes. You can keep an existing ISA open and it stays tax-free, but you cannot pay new money into it once you stop being a UK resident, unless you are a Crown employee working overseas or their spouse or civil partner. Tell your ISA provider as soon as you stop being resident.
How is my UK rental income taxed if I live abroad?
Under the Non-resident Landlord Scheme your letting agent or tenant deducts basic rate tax from the rent after allowable expenses. You can apply with form NRL1i to receive the rent gross and pay through Self Assessment instead, but HMRC will not approve it if your tax affairs are not up to date.
Sources
- gov.uk - Tax on your UK income if you live abroad
- gov.uk - Tax on your UK income if you live abroad: rent (Non-resident Landlord Scheme)
- gov.uk - Capital Gains Tax for non-residents: UK residential property
- HMRC Savings and Investment Manual SAIM1170 - disregarded income
- gov.uk - Individual Savings Accounts (ISAs): if you move abroad
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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.