What Is Tax Residency? | Tax Resident Meaning

Your tax residency is the country where you pay tax – usually where you live or work.

Your UK resident status affects how your income and capital gains, both UK and foreign, are taxed. Residency can be a complex area of tax law and the following is a broad guide. If you're in any doubt, you should get professional tax advice.

How is tax residency determined?

In the UK, your tax residency status will depend on a statutory residence test.

You’ll usually be regarded as a UK resident if:

You spend more than 183 days in the UK within a tax year
Your only home was in the UK for 91 days or more, and you stayed in this home for more than 30 days
You worked full time in the UK for any period of 365 days, and at least one day was in the tax year

If you’ve just moved to the UK, you may not be a tax resident yet – our moving to the UK guide has more information on how you’ll pay income tax.

Can you be a tax resident in 2 countries?

Yes – this is called dual residence.

In some situations, the 2 countries can have a double taxation agreement. This will decide:

Which country you’re regarded as resident in
Your exposure to tax in each country

What is a non-domiciled resident?

Your domicile is broadly the country you consider your permanent home. If your permanent home is outside the UK and you intend to return there in the future, you will be non-UK domiciled.

Previously, you didn't have to pay UK tax on foreign income and gains if you were a UK resident who had your permanent home outside the UK and you claimed the remittance basis of taxation.

The Government abolished this non-domiciled tax regime and replaced it with a residence-based system from 6 April 2025. Individuals who claimed the remittance basis before 6 April 2025 will still be liable to tax on foreign income and gains if those income and gains are remitted to the UK after 5 April 2025.

Find out how the new rules work This link will open in a new window.

How do I get a tax residency certificate?

Individuals who come to the UK have to determine their own residence status unless they’re resident in 2 countries. If you are resident in 2 countries and there's a double taxation agreement between the UK and the other country of residence, you can apply for a tax residency certificate (or certificate of residence) to claim tax relief in the other country. To do this, you’ll need to contact HM Revenue and Customs (HMRC).

How to fill in a tax residency self-certification form if dual resident

You can use the Government Gateway platform This link will open in a new window to find out more about the information needed for a certificate of residence and how to apply for one.

How to change tax residency

Under the Common Reporting Standard, financial institutions need to determine which country you’re a tax resident of.

If you’re leaving the UK, you’ll need to let HMRC know about your change in tax residency. To do this, you’ll need to complete a self-assessment tax return (if you’re in the self-assessment system). Otherwise you'll need to fill out a P85 form This link will open in a new window.

Which international services does HSBC offer?

We offer international services for both expats and those who are new to the UK.

If you’re new, we have guidance on living in the UK that covers everything from opening a UK bank account to sending money outside the UK.

For UK expats, we have dedicated support on our international services hub, including guidance on setting up your finances outside the UK.