If you’re wondering how to prove your UK residency for tax purposes, you’re not alone. As of April 6, 2025, the UK is moving away from the old domicile-based tax system and switching to a residency-based approach. This means that your tax obligations will now be based entirely on whether you qualify as a UK resident. This guide explains how HMRC determines residency, how to provide proof, and steps to ensure compliance.
What’s Changing and Why It Matters
In the past, the concept of “non-domiciled” status allowed some individuals to avoid UK tax on their foreign income, as long as they didn’t bring that income into the UK. But from April 6, 2025, that rule is gone. Instead, if you’re a UK resident, you’ll be taxed on your worldwide income and gains—regardless of where your money comes from.
This brings the UK in line with other countries that already tax based on residency. So, if you live in the UK, you’ll need to understand how to prove it to HMRC.
How to Prove Your UK Residency to HMRC
HMRC uses the Statutory Residence Test (SRT) to decide if you qualify as a UK resident for tax purposes. Here’s what you need to know:
- How Many Days You Spend in the UK
The easiest way to establish residency is through the number of days you physically spend in the UK. The key rules are:
- 183 days or more in the UK within a tax year → You’re automatically a UK resident.
- Less than 183 days? → HMRC will look at other factors to determine your status.
It’s a good idea to keep a detailed record of your travel, including passport stamps and flight tickets.
- Your Ties to the UK
If you spend fewer than 183 days in the UK, HMRC will assess other “ties” you have to the country. The more ties you have, the fewer days you need to spend here to be considered a resident. These include:
- Family Tie: If your spouse, civil partner, or minor child is a UK resident.
- Accommodation Tie: If you own, rent, or regularly stay in a UK home.
- Work Tie: If you work in the UK for at least 40 days in a tax year.
- 90-Day Tie: If you’ve spent 90 or more days in the UK in either of the previous two tax years.
- Country Tie: If the UK is the country where you spend the most time compared to anywhere else.
- Documents to Prove Your Residency
If HMRC asks for proof, you’ll need documents that show your presence and activity in the UK, such as:
- Travel records (passport stamps, flight tickets)
- Accommodation proof (rental agreements, mortgage statements, utility bills)
- Employment records (contracts, payslips, or work schedules)
- Bank statements (showing financial activity in the UK)
- Healthcare registration (proof of NHS registration or GP visits)
Having these documents organized can save you a lot of trouble if HMRC ever questions your residency status.
How These Changes Affect You
With the new system, all UK residents will now be taxed on their global income. However, there are some transitional reliefs to help ease the impact:
- Foreign Income and Gains (FIG) Relief
If you’re a new UK resident and haven’t been tax resident in the UK for the past 10 years, you get a four-year grace period where:
- You’ll get 100% relief on foreign income and gains.
- After four years, all your income (including foreign earnings) will be taxed in the UK.
This is designed to encourage people to move to the UK without immediate tax burdens.
- Changes to Trusts and Inheritance Tax
Previously, non-doms could use offshore trusts to protect foreign assets from UK tax. From 2025, these protections are being removed, meaning offshore trusts will be taxed based on the residency of the beneficiaries.
- Capital Gains Tax on Foreign Assets
If you’re a UK resident, you’ll also be taxed on gains from selling foreign properties or investments. If you’re affected, consider talking to a tax professional about whether selling assets before moving to the UK makes financial sense.
To help you prepare for these changes, here’s what you can consider:
- Track Your UK Days – Keep a log of travel dates and days spent in the UK.
- Keep Important Documents – Store contracts, bank statements, and proof of residence in an organized manner.
- Plan for Tax on Foreign Income – If you have overseas income, consider how this will affect your UK tax bill.
- Seek Expert Advice – If you’re unsure about anything, getting professional guidance can save you from costly mistakes.
Let’s Talk
Navigating tax changes can be tricky, but you don’t have to do it alone. If you need help figuring out your UK residency status or managing your tax obligations, get in touch with me, Ben Eccles. I’m here to help you understand your position and plan ahead effectively.
If you have any questions or need advice, don’t hesitate to reach out!
