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Moving Abroad from the UK: Complete Legal Exit Checklist

· 40 min

Note: The following scenario is fictional and used for illustration.

James, 42, accepted a two-year contract in Dubai starting March 2025. He spent weeks organizing shipping, visas, and accommodation. What he didn't do was tell HMRC he was leaving or update his 15-year-old will.

When James died unexpectedly in a car accident eight months into his Dubai posting, his estate faced a nightmare. HMRC treated him as UK resident because he failed the Statutory Residence Test—he'd taken too many UK work trips. His worldwide assets, including his Dubai salary and savings, were subject to UK inheritance tax. His outdated will named his ex-wife (they divorced in 2019) and used executors who'd since moved to Australia.

Probate took 26 months across three jurisdictions and cost his family over £47,000 in legal fees.

In 2022, 557,000 people emigrated from the UK—many without completing essential legal steps. This guide provides the complete legal exit checklist to protect your estate, minimize your tax liability, and ensure your family is protected no matter where you live.

Table of Contents

Most people focus on the exciting parts of moving abroad—new opportunities, career advancement, adventure. The legal requirements feel like tedious bureaucracy that can wait.

That's exactly how Emma, 38, felt when she moved to Singapore for a banking role. She updated her address with her credit card company and arranged shipping. What she didn't do was update her UK will or notify HMRC properly.

When Emma died unexpectedly two years later, her UK property went through an 18-month probate delay because her will named executors who no longer lived in the UK. Her family paid £12,000 in additional legal fees to navigate cross-border probate.

The three biggest legal risks when moving abroad without proper preparation are:

  1. HMRC penalties for failing to notify departure - Missing notification deadlines can result in penalties and continued UK tax liability on worldwide income
  2. Worldwide estate subject to UK inheritance tax unexpectedly - Under the new 2025 rules, your residence history determines IHT liability for 3-10 years after leaving
  3. Invalid or outdated will causing probate nightmare - Wills naming ex-partners, deceased executors, or inappropriate guardians create family disputes and massive delays

The cost of getting it wrong ranges from £10,000 to £50,000+ in additional legal fees, tax penalties, and probate costs. Many families also face years of stress, relationship breakdowns, and litigation.

Why "I'll sort it out later" fails: death is unexpected, residence status is determined by specific tests applied at the time, and IHT tail periods lock you into the UK tax system for years after you leave. You can't fix these problems after the fact.

Legal preparation before moving abroad isn't optional bureaucracy—it's financial and family protection worth thousands.

Understanding Your UK Tax Residence Status: The Statutory Residence Test

The Statutory Residence Test (SRT) determines whether you're a UK resident for tax purposes in each tax year. It was introduced in April 2013 under Finance Act 2013, Schedule 45 to replace the old, unclear residence rules.

Each tax year is assessed separately, so you can be UK resident one year and non-resident the next.

Your residence status matters because it determines whether you pay UK tax on your worldwide income and—critically—whether your worldwide estate is subject to UK inheritance tax under the new 2025 rules.

Automatic Overseas Tests (You're Definitely Non-Resident)

You're automatically non-UK resident for the tax year if you meet any of these tests:

  • Previously non-resident and spent fewer than 16 days in UK - If you were non-resident for all three previous tax years and spend fewer than 16 days in the UK
  • Left UK to work full-time overseas - You work full-time overseas AND spend fewer than 91 days in UK AND work in UK fewer than 31 days (only applies for first three tax years after leaving)
  • Work full-time overseas - You work full-time overseas throughout the tax year, spend fewer than 91 days in UK, and work in UK fewer than 31 days with no significant break from overseas work

Automatic UK Tests (You're Definitely UK Resident)

You're automatically UK resident for the tax year if you meet any of these tests:

  • Spend 183+ days in UK - If you spend 183 or more days in the UK during the tax year, you're UK resident. There's no need to consider any other tests.
  • Only home in UK - Your only home is in the UK for 91+ consecutive days AND you visit it for 30+ days in the tax year
  • Work full-time in UK - You work full-time in the UK for any 365-day period with at least one day falling in the tax year

Sufficient Ties Test

If you don't meet any automatic test, you use the sufficient ties test. This counts your UK "ties" and compares them to the number of days you spend in the UK.

The five UK ties are:

  1. Family tie - Spouse, civil partner, or minor children are UK resident
  2. Accommodation tie - You have UK accommodation available for 91+ days and spend at least one night there
  3. Work tie - You work in UK for 40+ days (working 3+ hours counts as a work day)
  4. 90-day tie - You spent 90+ days in UK in either of the previous two tax years
  5. Country tie - You spend more days in UK than any other single country (only applies if previously UK resident)

The more ties you have, the fewer days you can spend in UK before becoming UK resident.

Marcus spent 120 days in UK during his first year living in Dubai—visiting family and attending work meetings in London. He assumed he was automatically non-resident because he lived in Dubai.

He was wrong. Marcus failed the automatic overseas test because he spent more than 91 days in UK. Under the sufficient ties test, he had four UK ties (family, accommodation at parents' house, work, and 90-day tie from previous year). With four ties, the threshold is just 46 days before becoming UK resident.

Marcus became UK resident for that tax year, owed UK tax on his worldwide income including his Dubai salary, and his worldwide estate remained within scope for UK inheritance tax.

Split Year Treatment

Split year treatment may apply if you leave the UK to work full-time overseas. Instead of treating the entire tax year as UK resident or non-resident, part of the year is treated as UK resident and part as non-resident.

This can significantly reduce your UK tax liability in the year you move because only your UK-resident portion is taxed on worldwide income.

The Statutory Residence Test isn't just tax bureaucracy—it determines your income tax liability AND feeds into the new inheritance tax long-term residence test that affects your estate for 3-10 years after leaving.

How to Notify HMRC You're Leaving the UK (Form P85 and Self Assessment)

You must tell HMRC when leaving the UK to live abroad permanently. This is a legal requirement, not optional.

Notify HMRC before you leave or as soon as possible after leaving. Don't wait.

Method 1: Form P85 (If You Don't Complete Self Assessment)

Most employees use form P85 to notify HMRC they're leaving.

What you need:

  • Completed P85 form (online or postal)
  • Parts 2 and 3 of your P45 from your employer
  • If you don't have a P45 (because you're continuing to work for a UK company remotely), submit the P85 anyway and explain why

What happens next:

HMRC will calculate whether you're owed a tax refund for the year of departure. Many people overpay PAYE throughout the year and are entitled to refunds when they leave partway through a tax year.

Sarah left the UK in September 2024. She completed her P85 in October and received a £2,400 tax refund in December because she'd overpaid PAYE on her salary before leaving.

Important: HMRC sends refund cheques to UK addresses only. Keep your UK bank account open to deposit the refund, or you'll face currency conversion fees and international transfer charges.

Method 2: Self Assessment (If You Complete Tax Returns)

If you complete Self Assessment tax returns, tell HMRC you're leaving through the 'residence' section (form SA109) in your tax return for the year you leave.

Do NOT also submit a P85—it's not required if you're completing Self Assessment.

What NOT to Do

Don't assume you're automatically non-resident just because you notified HMRC. Residence status is determined by the Statutory Residence Test, not by notification.

Notification tells HMRC you've left so they can close your UK tax affairs properly. The SRT determines whether you actually qualify as non-resident for tax purposes.

Ongoing Obligations

Contact HMRC if your circumstances change abroad:

  • You move house
  • Your marital status changes
  • You return to the UK

Failing to notify HMRC of changes can result in penalties and incorrect tax assessments.

Notifying HMRC isn't optional—it's a legal requirement that also ensures you claim back overpaid tax before leaving.

The New 2025 UK Inheritance Tax Rules for Expats

From 6 April 2025, the UK made the biggest change to inheritance tax for expats in decades. The old domicile-based system was replaced with a residence-based system.

This fundamentally changes when you're liable for UK inheritance tax on your worldwide estate.

The Old System (Pre-April 2025)

Under the old system, UK inheritance tax was based on domicile. If you were UK domiciled—or deemed domiciled after living in the UK for 15 out of 20 years—your worldwide estate was subject to UK IHT at 40% on amounts above £325,000.

Many expats lived abroad for decades but remained UK domiciled, meaning their entire worldwide estate stayed within UK IHT. The only way to change domicile was complex and uncertain.

The New System (From April 2025)

The new system is based on residence history, not domicile.

What is a Long-Term Resident (LTR)?

You're a long-term resident if you've been UK tax resident for 10 out of the previous 20 tax years. As an LTR, you're liable for UK inheritance tax on your worldwide assets—property, investments, pensions, bank accounts anywhere in the world.

If you're not a long-term resident, you only pay UK IHT on UK assets (UK property, UK pensions, UK investments).

The "Tail Period" - Critical for Expats Leaving the UK

You don't immediately escape UK IHT when you leave. The tail period means you remain liable for UK IHT on your worldwide estate for 3 to 10 years after leaving, depending on how long you lived in the UK.

How the tail period is calculated:

  • UK resident for 13 years or less → 3-year tail
  • UK resident for 14 years → 4-year tail
  • UK resident for 15 years → 5-year tail
  • UK resident for 16 years → 6-year tail
  • UK resident for 17 years → 7-year tail
  • UK resident for 18 years → 8-year tail
  • UK resident for 19 years → 9-year tail
  • UK resident for 20+ years → 10-year tail (maximum)

David lived in the UK for 18 years before moving to Australia in April 2025. His worldwide estate remains subject to UK inheritance tax until April 2033—an 8-year tail.

During those 8 years, if David dies, his Australian property, Australian bank accounts, and all worldwide assets are subject to UK IHT at 40% on the value above £325,000 (plus any applicable residence nil-rate band).

Transitional Rules (Limited Window)

If you're non-UK resident in the 2025-26 tax year AND you were not UK domiciled on 30 October 2024, your tail period is capped at just 3 years regardless of how long you lived in the UK.

This creates a limited window for long-term expats who left before 6 April 2025 to restructure their estates with only a 3-year tail instead of the full 10-year tail.

UK Assets Always Subject to IHT

Regardless of your residence status, UK property, UK pensions, and UK investments are always liable for UK inheritance tax.

Even if you've been non-resident for 20 years and your worldwide estate is exempt, your UK buy-to-let property is still subject to 40% IHT on the value above thresholds.

Benefits for Long-Term Expats

If you've been non-UK resident for 10+ years, you immediately lose long-term resident status from April 2025. Your worldwide estate (except UK assets) is no longer subject to UK IHT.

This is genuinely beneficial for expats who left the UK years ago and have built substantial wealth abroad.

Returning to the UK

It takes 10 years of UK residence to regain long-term resident status. This creates a valuable tax planning window when you return.

During those first 10 years back in the UK, your worldwide estate isn't subject to UK IHT (though UK assets are). You have time to make gifts, set up trusts, and restructure assets before UK IHT applies to everything.

The April 2025 IHT changes are the biggest shift in UK estate planning for expats in decades—understanding your tail period is critical to protecting your worldwide estate.

Do You Still Need a UK Will After Moving Abroad?

Yes. Absolutely. If you have UK assets—property, pensions, investments, or bank accounts—you need a UK will.

The Common Myth

Many people believe moving abroad invalidates their UK will or eliminates the need for one.

False. Your UK will remains valid unless you revoke it or create a new will that explicitly revokes all previous wills. Moving abroad doesn't automatically invalidate anything.

What Counts as UK Assets Requiring a UK Will

  • UK property (residential, buy-to-let, commercial)
  • UK pensions (private pensions, workplace pensions, SIPPs)
  • UK investments (ISAs, stocks, bonds)
  • UK bank accounts
  • UK business interests

If you have any of these, you need a UK will to control who inherits them.

What Happens Without a UK Will

UK intestacy rules apply to your UK estate. These rules may not reflect your wishes at all.

Under intestacy, your spouse receives the first £270,000 plus personal belongings and half the remainder. Your children split the other half. If you have no spouse or children, your estate passes to parents, then siblings, then more distant relatives.

Intestacy also causes delays, higher costs, and family disputes. It's the opposite of planning.

Lisa's Story

Lisa moved to Canada in 2018. She didn't update her UK will from 2012 because she thought "it still works."

When Lisa died in 2024, her UK will still applied to her UK property and pension worth £340,000 combined. But the will named her ex-husband as executor and beneficiary from before her divorce in 2020.

Her current partner, who she'd lived with for three years, inherited nothing from her UK assets. The UK assets went entirely to her ex-husband because the will was never updated.

Lisa's family contested the will, but UK law was clear—the will was valid and binding. The contest failed, costing £18,000 in legal fees.

Review Triggers for Your UK Will

Update your UK will before moving abroad and whenever:

  • You divorce, remarry, or your relationship breaks down
  • You have children
  • Your UK assets change significantly (buy/sell property, new pension)
  • You change country of residence (may need multiple wills strategy)
  • Your executors die, move abroad, or become unsuitable

Executor Considerations

UK-based executors make probate easier. They can attend court hearings, meet with solicitors, and access UK documents without international complications.

Consider appointing a UK resident as executor or co-executor if you move abroad but retain UK assets.

According to Expat Wealth At Work, 70% of expats don't have proper estate planning in place. Don't be part of this statistic.

Moving abroad doesn't eliminate the need for a UK will—it makes it MORE important to ensure your UK assets pass to your chosen beneficiaries, not through intestacy rules.

The Multiple Wills Strategy: UK Will + Foreign Will

Many expats have two or more wills—one for UK assets, one for foreign assets. This isn't complex estate planning reserved for the wealthy. It's practical common sense.

The Probate Problem

There's no uniform international probate system. Every country has different rules, timelines, costs, and procedures.

If you have a single UK will covering worldwide assets and you die owning Spanish property, your executors must:

  1. Apply for UK probate
  2. Get UK probate grant resealed in Spanish courts (or apply for separate Spanish probate)
  3. Navigate Spanish probate law in Spanish
  4. Wait 18-24+ months for cross-border probate to complete

The process is expensive, slow, and frustrating for your family.

What is the Multiple Wills Strategy?

You create separate wills for assets in different jurisdictions:

  • UK will covers UK property, UK pensions, UK investments, UK bank accounts
  • Spanish will covers Spanish property
  • Australian will covers Australian assets

Each will is drafted under local law and goes through probate in that country only.

Key Benefits

  • Faster probate - Avoid resealing UK probate in foreign courts or navigating complex international recognition
  • Lower costs - One local probate process per country instead of coordinated international probate
  • Legal certainty - Each will drafted under local law by local lawyers who understand that jurisdiction
  • Reduced family conflict - Clear separation of assets by jurisdiction reduces confusion and disputes

CRITICAL Wording Requirement

Each will must state clearly it ONLY applies to assets in that specific jurisdiction and does NOT revoke other wills.

Example clause for UK will:

"This Will deals only with my assets situated in England and Wales and does not revoke or affect any Will I have made elsewhere."

What to avoid:

Don't create a new foreign will with a broad "I revoke all previous wills" clause. This accidentally revokes your UK will, leaving your UK assets to pass under intestacy.

This is an extremely common mistake that costs families thousands.

Consistency Requirement

Beneficiaries and distribution percentages should be consistent across wills unless you have a specific reason for different treatment.

If your UK will leaves everything equally to your two children, your Spanish will should do the same. Inconsistency creates confusion, disputes, and questions about your true intentions.

Executor Strategy

Consider appointing local executors in each jurisdiction:

  • UK executor for UK will (someone resident in England and Wales)
  • Spanish executor for Spanish will (someone resident in Spain or a Spanish lawyer)

Local executors can navigate local probate systems, attend hearings, and access local documents easily.

Michael's Success Story

Michael had UK property worth £280,000 and a Spanish villa worth €195,000.

He created two wills:

  • UK will - Covered UK property with his brother in Manchester as executor
  • Spanish will - Covered Spanish villa with his Spanish lawyer as executor

When Michael died, probate ran simultaneously in both countries. His brother handled UK probate while his Spanish lawyer handled Spanish probate. The entire estate was settled in 9 months instead of the 24+ months a single will would have required.

Michael's family saved approximately £15,000 in legal fees and avoided years of stress.

Cross-Reference Requirement

Inform all executors where ALL wills are stored. Keep copies cross-referenced with notes about other wills.

Your UK executor should know you have a Spanish will and where it's stored. Your Spanish executor should know about your UK will.

Review Schedule

Review ALL wills after major life changes:

  • Divorce or remarriage
  • Birth of children
  • Relocation to new country
  • Purchase or sale of foreign property
  • Death of executor or beneficiary

Don't assume updating one will is sufficient. Review all wills together to maintain consistency.

Commonwealth Countries

Some Commonwealth countries including Australia and New Zealand allow UK probate to be "resealed" in local courts. This is faster than full local probate but still requires local legal process.

Even in Commonwealth countries, many expats prefer separate wills for speed and simplicity.

The multiple wills strategy isn't complex estate planning—it's practical common sense to avoid probate delays and ensure each country's legal system handles local assets efficiently.

Financial and Banking Requirements Before You Leave

Your financial life doesn't disappear when you move abroad. But managing UK financial services from overseas requires careful planning and communication.

UK Bank Accounts

Notify your bank BEFORE you leave. This is critical. Banks monitor account activity for fraud and money laundering. Sudden foreign logins and transactions from Dubai or Singapore can trigger automatic account freezes.

Call your bank's international customer service line at least 30 days before leaving. Provide:

  • Your departure date
  • Your foreign address
  • Confirmation you want to keep the account open

Check residency requirements. Some UK banks close accounts for non-residents or restrict services. Ask specifically:

  • Can non-residents hold this account?
  • Will I lose access to any services (overdraft, credit cards, online banking)?
  • Are there additional fees for non-resident accounts?

Keep your UK account open temporarily. HMRC sends tax refunds to UK addresses only and payments can take 3-6 months to arrive. If you close your account too early, you'll face currency conversion fees and international transfer complications.

Paul closed his UK bank account two weeks before moving to Dubai. HMRC sent his £1,800 tax refund cheque to his UK address four months later—but the account was closed.

It took nine months and multiple HMRC calls to arrange payment to his Dubai account, incurring a £140 international transfer fee that HMRC wouldn't cover.

Only keep UK accounts genuinely active. You can only maintain a UK bank account if you'll use it regularly with deposits, withdrawals, or payments. Don't keep dormant accounts "just in case."

Credit Cards and Loans

Pay off credit cards before leaving if possible, or set up automatic payments from your UK bank account.

Notify credit card companies of your foreign address. Some credit agreements prohibit non-residence, so check terms before leaving.

Close unused accounts to avoid dormancy issues and annual fees for cards you won't use.

Investments (ISAs, Stocks, Bonds)

ISAs can remain open if you're non-resident, but you cannot contribute new funds. Existing ISA investments continue to grow tax-free.

Inform investment platforms of your non-residence status. They may restrict certain services or require additional documentation.

Consider tax implications in your new country. Some countries tax ISA growth as ordinary income, eliminating the UK tax benefit. Research your destination country's treatment of UK ISAs before assuming they remain tax-efficient.

Review your investment strategy for currency risk. If you're earning in euros or dollars but your investments are in pounds, currency fluctuations can significantly impact real returns.

Currency and Exchange

Don't transfer large sums at airport exchange bureaus or high street banks. Rates are terrible.

Use specialist currency transfer services like Wise, CurrencyFair, or OFX for house deposits and large transfers. These services offer exchange rates within 0.5% of the mid-market rate, compared to 3-5% markups at traditional banks.

Budget for 6-12 months of living expenses in your destination country to avoid forced currency exchanges at unfavorable rates.

Financial Documentation to Take

Print and pack physical copies:

  • 6 months of bank statements
  • Credit report (may be required for foreign bank accounts, rental applications, mortgages)
  • Tax returns for previous 3 years
  • Investment statements
  • Pension documentation

Having UK financial documentation makes opening foreign bank accounts and applying for mortgages much easier.

What NOT to Do

Don't transfer pensions or ISAs without specialist tax advice. Moving UK pensions to QROPS (Qualifying Recognised Overseas Pension Schemes) can trigger exit charges, loss of UK tax relief, and unexpected tax bills in your destination country.

Pension transfers are complex cross-border transactions. Use a regulated financial advisor specializing in international pensions.

Notify financial providers before you leave, keep your UK bank account open temporarily, and never make major financial moves without understanding cross-border tax consequences.

Government Notifications: Pensions, Benefits, and Student Loans

Moving abroad doesn't end your relationships with UK government agencies. You must notify several departments and understand how living abroad affects your entitlements.

State Pension

Contact the International Pension Centre before you leave. You can still claim your UK State Pension while living abroad.

Critical question: Will your pension increase annually?

This depends on your destination country and whether the UK has a social security agreement.

Countries where pensions increase with inflation:

  • European Economic Area countries
  • Switzerland
  • USA
  • Gibraltar

Countries with "frozen pensions" (no annual increases):

  • Canada
  • Australia
  • South Africa
  • New Zealand
  • India

If you move to Canada at age 65 with a State Pension of £11,500 per year, that pension stays frozen at £11,500 for life. In the UK, it would increase annually with inflation, reaching approximately £14,000 after 10 years.

The lifetime cost of frozen pensions can exceed £50,000 in lost income.

Private and Workplace Pensions

Private pensions can usually be paid to foreign bank accounts. Notify your pension provider of:

  • Your foreign address
  • Your foreign bank details for payments
  • Your departure date

Tax treatment varies by destination country. The UK-Spain double taxation treaty, for example, allows Spain to tax UK private pension income. The UK-USA treaty allocates taxation differently.

Never transfer a pension without advice from a regulated financial advisor specializing in international pensions. QROPS transfers, exit charges, and tax implications are complex and mistakes cost thousands.

Benefits (Universal Credit, Child Benefit, etc.)

Most UK benefits stop when you move abroad permanently.

Notify the relevant benefit office of your departure date immediately. Continuing to claim benefits you're not entitled to is fraud and can result in prosecution.

Some benefits continue for limited periods. Check gov.uk guidance for specific rules.

In EEA countries, some benefits coordinate under retained EU law, but rules vary by country and benefit type.

Student Loans

Contact the Student Loans Company when moving abroad.

Your repayment obligations continue based on your worldwide income. Different income thresholds apply for overseas borrowers.

You must complete an annual overseas income assessment form. The Student Loans Company uses this to calculate your required monthly repayment.

Critical: Failing to notify can result in your full balance becoming due immediately.

Tom moved to Australia without telling the Student Loans Company. SLC couldn't contact him at his UK address. They deemed his loan in default and demanded the full £28,000 balance payable immediately.

SLC pursued Tom's UK-based guarantor for repayment. Tom only discovered the problem when his father received a demand letter for £28,000.

Council Tax

Contact your local council with your forwarding address.

Council tax liability ends when you permanently leave your UK residence. If you're renting out your UK property, inform the council—your tenants become liable for council tax.

Close your account or nominate someone to receive correspondence on your behalf.

Electoral Register

You can register as an overseas voter if you've been UK resident within the last 15 years.

This allows voting in UK Parliamentary elections (but not local elections). You must renew registration annually—it doesn't automatically continue.

Moving abroad doesn't end your obligations to UK government agencies—notify each one to avoid penalties, benefit overpayments, and enforcement action.

Property, Investments, and UK Assets: What You Must Declare

Non-residence doesn't eliminate UK tax on UK assets. If you have UK income or gains, you must declare them to HMRC.

UK Property Rental Income

If you own UK property and rent it out, you must pay UK tax on rental income even as a non-resident.

Requirements:

  1. Register for Self Assessment if you're not already registered
  2. Complete annual Self Assessment tax return
  3. Declare rental income and claim allowable expenses (mortgage interest, repairs, letting agent fees)
  4. Pay UK tax on rental profits

Double taxation: You may also owe tax on UK rental income in your country of residence. Check whether a double taxation treaty exists—you may get credit in one country for tax paid in the other.

Consider using a UK letting agent to manage property and tax compliance. Many offer services specifically for expat landlords.

Rachel owned a UK buy-to-let generating £18,000 annual rental income. She moved to France and didn't register for Self Assessment or declare the income.

HMRC discovered the rental income three years later through their property database. Rachel was charged £12,600 in back taxes plus £3,800 in penalties and interest.

Selling UK Property as Non-Resident

You must report the sale to HMRC within 60 days using the UK Property Reporting Service.

Capital Gains Tax may apply depending on:

  • Whether the property was ever your main residence
  • How long you owned it
  • The gain amount relative to your annual exempt amount
  • Whether you qualify for Private Residence Relief

Different rules apply if the property was your main residence before moving abroad. You may qualify for relief on part or all of the gain.

UK Investments (Dividends, Interest, Capital Gains)

Dividend income from UK companies may be subject to UK withholding tax and also taxed in your country of residence. Double taxation treaties determine which country has primary taxing rights.

Interest on UK savings is usually not taxed in the UK if you're non-resident, but you must declare it in your country of residence.

Capital gains on UK assets are generally exempt for non-residents unless you return to the UK within 5 years of selling. The 5-year rule can trigger unexpected tax bills if you return sooner than planned.

Pensions

UK pension income is usually taxable in the UK, though some double taxation treaties allocate pension taxation to the country of residence.

The 25% tax-free lump sum typically remains tax-free for non-residents, but this depends on the specific treaty between the UK and your destination country.

Inheritance of UK Assets

UK inheritance tax applies to UK assets regardless of your residence status.

  • UK property: Subject to IHT at 40% on value above £325,000
  • UK pensions: Usually subject to IHT
  • UK investments: Subject to IHT

The residence nil-rate band (£175,000 for property passing to direct descendants) may apply to UK property.

Double Taxation Treaties

The UK has double taxation treaties with over 130 countries to prevent the same income being taxed twice.

Treaties specify which country has primary taxing rights for different income types (employment income, pensions, rental income, dividends, capital gains).

You may receive a tax credit in one country for tax paid in the other, reducing overall tax liability.

Always check the specific treaty between the UK and your destination country before assuming tax treatment. Treaty terms vary significantly.

Record-Keeping

Keep all records for UK assets for at least 6 years. HMRC can investigate historic years if they suspect undeclared income.

Store:

  • Rental income records and expense receipts
  • Property purchase and sale documents
  • Investment statements and dividend records
  • Pension statements
  • Bank statements showing UK income

Non-residence doesn't eliminate UK tax on UK assets—you MUST declare UK income to HMRC and understand double taxation treaty rules to avoid penalties and double taxation.

Healthcare, National Insurance, and Social Security Agreements

Healthcare and social security contributions connect directly to your long-term financial security and access to essential services.

NHS Access When Non-Resident

Leaving the UK permanently usually means you're no longer entitled to free NHS care.

Emergency treatment at A&E may be free, but other treatment—GP visits, specialist appointments, surgery—may be charged at the full non-resident rate.

Some temporary visits allow NHS access depending on specific circumstances. If you return to the UK for more than 6 months, you regain NHS access.

National Insurance Contributions

Contributions made before leaving are never refunded. They count toward your UK State Pension and some UK benefits.

You need 35 qualifying years of National Insurance contributions to receive the full State Pension. If you have gaps in your contribution record, your pension will be reduced.

Voluntary Class 2 contributions are available if you're working abroad. Cost: £3.45 per week in 2024-25.

This is one of the best investments you can make. For £179.40 per year, you maintain a qualifying year toward your State Pension.

Claire moved to New Zealand and stopped paying voluntary NI contributions to save money. After 15 years abroad, she realized she was 8 qualifying years short for full State Pension.

At age 65, her State Pension was reduced by £2,200 per year for life. Assuming she lives to 85, her total lifetime loss is over £44,000—all to save £179 per year.

Social Security Agreements

The UK has reciprocal social security agreements with over 30 countries. These agreements allow NI contributions to count toward benefits in treaty countries and vice versa.

Countries with social security agreements include:

  • European Economic Area countries
  • USA
  • Canada
  • Australia
  • New Zealand
  • Japan
  • South Korea
  • Switzerland
  • Many others

Check gov.uk social security agreements for your specific destination country.

Healthcare in Destination Country

Research the healthcare system at least 3 months before leaving:

  • Does the country have public healthcare? Is there a qualifying period before access?
  • Does your visa require private health insurance?
  • What's the quality and cost of healthcare?
  • Are prescription medications available and affordable?

Some countries require proof of health insurance for visa applications. Budget for private health insurance if there's no public option or if your visa requires it.

Prescription Medications

Take a 3-month supply if legally allowed. Get a letter from your GP listing medications, dosages, and medical conditions.

Critical: Check medication is legal in your destination country. Some UK medications are banned in other countries. Research this before packing.

Register with a local doctor soon after arrival to ensure continuity of care.

Medical Records

Request a copy of your medical records from your GP. Ensure vaccination records are up to date—these may be required for visa applications or school enrollment for children.

Some destination countries require medical documents to be apostilled (officially certified for international use). Check requirements well in advance.

Maintaining voluntary NI contributions while abroad is one of the best investments you can make—protecting your UK State Pension for just £3.45 per week.

Use this timeline to ensure all legal, financial, and administrative tasks are completed before leaving the UK.

90 Days Before Departure

Legal:

  • Review and update your UK will (executors, beneficiaries, guardians)
  • Consider multiple wills strategy if acquiring foreign assets
  • Research destination country will and estate planning requirements

Tax Planning:

  • Start Statutory Residence Test planning (calculate projected UK days for tax year, plan trips)
  • Book appointments with cross-border tax advisor if you have complex assets

Practical:

  • Request copies of medical records from GP
  • Ensure vaccinations up to date
  • Apostille any documents required by destination country

60 Days Before Departure

Financial:

  • Notify your bank of foreign address and departure date
  • Check bank's residency requirements for keeping account open
  • Notify investment platforms and pension providers
  • Confirm ISAs and pensions can remain open as non-resident
  • Complete credit report (may be needed for foreign bank account, rental, mortgage)

Employment:

  • Notify employer of departure to ensure you receive P45 on last day
  • Confirm final salary payment and any owed holiday pay

Insurance:

  • Cancel or transfer insurance policies (home, car, life, health)
  • Research healthcare insurance requirements for destination country

30 Days Before Departure

HMRC and Tax:

Local Authority:

  • Contact council tax department with forwarding address
  • Arrange final council tax payment or tenant takeover (if renting out property)

Utilities and Services:

  • Cancel or transfer utilities (gas, electric, water, broadband, TV licence)
  • Set up postal redirection (12 months recommended)

Electoral Register:

DVLA:

  • Notify DVLA if keeping UK driving license (some countries allow use for 12 months before requiring local license)

7 Days Before Departure

Final Confirmations:

  • Confirm you've received P45 from employer
  • Confirm bank has foreign address on file
  • Confirm all utility final readings submitted

Documentation:

  • Print copies of all important documents (passport, birth certificate, marriage certificate, will, medical records, tax returns, pension statements)
  • Pack physical copies separately from originals
  • Store digital copies in secure cloud storage

Financial:

  • Transfer initial funds to destination country account using currency specialist (not airport exchange)
  • Confirm exchange rate and fees before authorizing transfer

Will and Estate:

  • Confirm UK will is stored safely (solicitor's office, secure home location)
  • Inform executors of exact will location and how to access it
  • Provide executors with copy of will for their records

Property:

  • Take photos/videos of UK property contents (if renting out or selling)
  • Provide letting agent or tenant with final meter readings

Day of Departure

Critical Tasks:

  • Note exact date of departure (critical for Statutory Residence Test and split year treatment)
  • Begin tracking UK days for the tax year (every day counts for SRT)

Final Arrangements:

  • Confirm someone in UK can receive post and handle emergencies
  • Keep UK mobile number active temporarily (can port to VoIP service for overseas use)
  • Store all moving documents, receipts, and records for tax purposes

Checklist Summary Table

Timeframe Legal Financial Government Practical
90 days Update UK will, plan SRT, multiple wills strategy Financial advisor consultation Medical records, vaccinations Research destination law
60 days - Notify bank, investments, pension providers P45 from employer Credit report, cancel insurance
30 days - Postal redirect P85 form, pensions, student loans, council tax Cancel utilities
7 days Store will safely, inform executors Transfer initial funds Apostille documents Print copies of all docs
Day 0 Note departure date Keep UK mobile temporarily - Confirm UK contact person

Sophie followed this 90-day checklist religiously. She updated her will 85 days before leaving, notified HMRC 28 days before departure, transferred funds using a currency specialist (saved £1,200 vs her bank's rate), and kept detailed records of UK days.

When HMRC queried her residence status 18 months later, she had perfect documentation showing she met the automatic overseas test. No penalties, no disputes, no stress.

The 90-day countdown checklist ensures you don't miss critical legal and financial tasks—use it as your master timeline for stress-free international relocation.

Frequently Asked Questions

Q: Do I need to tell HMRC when I move abroad permanently?

A: Yes, you must notify HMRC when leaving the UK to live abroad permanently. If you don't complete Self Assessment, fill in form P85 and include Parts 2 and 3 of your P45. If you complete Self Assessment, tell HMRC through the 'residence' section (form SA109) in your tax return for the year you leave.

Q: Will I still pay UK inheritance tax after moving abroad?

A: From April 2025, UK inheritance tax depends on your residence history, not domicile. If you've been UK tax resident for 10 out of the previous 20 tax years, you're a 'long-term resident' and liable for UK IHT on worldwide assets. After leaving, a 'tail period' of 3-10 years applies depending on how long you lived in the UK.

Q: Do I need a new will when moving abroad from the UK?

A: Moving abroad doesn't automatically invalidate your UK will, but you should review it urgently. If you have UK assets (property, pensions, investments), you'll need a UK will. Many expats have two wills—one for UK assets and one for assets in their new country—to avoid probate delays across jurisdictions.

Q: What is the Statutory Residence Test and why does it matter?

A: The Statutory Residence Test (SRT) determines your UK tax residence status for each tax year. It uses automatic overseas tests, automatic UK tests, and a sufficient ties test. Your residence status affects whether you pay UK tax on worldwide income and whether your worldwide estate is subject to UK inheritance tax.

Q: How long does the UK inheritance tax 'tail period' last after emigrating?

A: The IHT tail period ranges from 3 to 10 years depending on how long you lived in the UK. If you were UK resident for 13 years or less, the tail is 3 years. For each additional year of UK residence, add one year to the tail period, up to a maximum of 10 years for those resident 20+ years.

Q: Can I keep my UK bank account after moving abroad?

A: You can keep your UK bank account if you genuinely plan to keep it active with regular deposits, withdrawals or payments. Inform your bank of your move to prevent account freezes. Some banks may close accounts for non-residents, so check your bank's residency requirements before moving.

Q: What happens to my UK pension when I move abroad?

A: You can still claim your UK State Pension while living abroad. Contact the International Pension Centre before you move to understand how living abroad affects your pension and how to claim it. Private pensions can usually be transferred or paid abroad, but tax treatment varies by country.

Q: Do I need to pay UK tax on my rental income if I move abroad?

A: Yes. If you're non-resident but have UK income (such as rental income from a UK property), you must still pay UK tax on that income. You'll need to register for Self Assessment and complete a tax return each year, declaring your UK rental income and paying the appropriate tax.

Q: What is split year treatment and could I qualify for it?

A: Split year treatment allows you to treat part of a tax year as UK resident and part as non-resident, rather than the whole year being one or the other. You may qualify if you leave the UK to work full-time overseas or arrive to work full-time in the UK. This can significantly reduce your UK tax liability in the year you move.

Q: How do the new 2025 inheritance tax rules affect long-term expats returning to the UK?

A: Under the new residence-based system, it takes 10 years of UK residence for you to regain long-term resident (LTR) status. This creates a valuable 10-year window for tax-efficient estate planning when you return to the UK, allowing time to make gifts, set up trusts, and restructure assets before UK IHT applies to your worldwide estate.

Conclusion

Moving abroad from the UK is exciting—new opportunities, experiences, and perspectives await. But leaving without completing your legal exit checklist can haunt your family for years, costing tens of thousands in unnecessary taxes, legal fees, and probate delays.

Your legal exit checklist:

  • Notify HMRC using P85 or Self Assessment before you leave
  • Understand your Statutory Residence Test status and plan UK days carefully
  • Calculate your IHT tail period under new April 2025 rules (3-10 years depending on UK residence)
  • Update your UK will BEFORE departure—or create multiple wills if acquiring foreign assets
  • Notify pensions, student loans, council tax, and all financial providers
  • Maintain voluntary NI contributions to protect your UK State Pension
  • Keep detailed records of departure date and UK days for SRT compliance

The biggest mistake expats make is assuming "I'll sort out the legal stuff later." Later becomes never. And when the unexpected happens—death, illness, family disputes—your family pays the price.

Act now, before your move date. Review your UK will, understand your IHT liability under new 2025 rules, and complete your 90-day legal exit checklist. Your family's financial security depends on the legal preparation you do today.

Need Help with Your Will?

Moving abroad from the UK brings exciting opportunities, but it also requires careful legal preparation. One of the most important steps is ensuring your UK will is up to date and reflects your current wishes, executors, and beneficiaries. An outdated or invalid will can cost your family tens of thousands in probate delays and legal fees—even if you live abroad.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete will (legally binding when properly executed and witnessed) plus three expert guides. Preview your will free before paying anything—no credit card required.

Will Basics:

Inheritance Tax & Probate:

Expat & International:

  • Expat Will Requirements: Living Abroad with UK Assets - Expat-specific guidance
  • Digital Assets in Your Will - Include digital assets in your will

Special Circumstances:

  • Divorce and Your Will: What You Must Know - How divorce affects your will
  • Second Marriages and Stepchildren: Will Planning - Will planning for blended families
  • Self-Employed Will Planning - Self-employed estate planning

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

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