From our base in Southborough, near Tunbridge Wells, we not only support our local clients, we also enjoy working with clients based further afield and also some who live overseas. In fact, we’ve noticed an increase in enquiries recently from clients asking us about the tax implications of moving their businesses abroad, often to countries such as Spain or Portugal.
Currently, around 5.5 million people from Britain live overseas. According to the international movers comparison website, Compare My Move, an estimated over half a million British people left the UK in 2023. There are many reasons for making the move, including cost of living, change of lifestyle, family reasons, work and education, etc.
From a practical point of view, how many of us have noticed that working remotely is much easier than it used to be. There’s even a group of people described as digital nomads, who leverage technology to work remotely overseas.
Compare My Move, states that the top five countries British people moved to in 2023 were Spain, the USA, Australia, France and Italy. Coming in at number seven was the United Arab Emirates and, if Instagram is anything to go by, it’s likely that this country might be heading up the list. For example, Rio Ferdinand and his family moved from Bromley to Dubai in the summer of 2025.
If you relocate overseas, this doesn’t automatically mean that you stop paying tax in the UK. Your tax obligations will depend on your residency status; the UK has specific rules to determine residency status, including factors, such as the number of days spent in the UK and your ties to the country.
The chances are, however, that you’ll still be required to fill-out a tax return in the UK, particularly if you still have an income tied to the UK in some way and that includes income from renting out your UK property.
If you live or work between countries, your tax position can quickly become complicated. Residency and domicile status affects your liability for UK tax on income, capital gains and assets held abroad – and the rules can be difficult to navigate.
If you remain a UK tax resident, you will generally be liable to pay UK income tax on your worldwide income. However, if you become non-resident, you may only have to pay UK tax on certain types of UK-sourced income. The UK has tax treaties with many countries to prevent double taxation. These agreements usually determine which country has the primary right to tax specific types of income, and mechanisms (such as tax credits or exemptions) to mitigate double taxation.
Here at Lewis & Co, we help individuals, expats and non-domiciled (non-dom) clients understand their UK tax obligations and plan efficiently. We can deal with HMRC on your behalf and handle queries or disclosure where needed. After all, getting it wrong can mean unexpected tax bills, double taxation or penalties.
If you are looking to move abroad, then do get in touch with us on 01892 513515.
