Pre-arrival Tax Planning

UK rental profits can be taxable even before you become UK tax resident. If you live overseas, the Non-Resident Landlord Scheme may require your letting agent or tenant to deduct tax from rent.

You can apply for HMRC approval to receive rent without these deductions. Approval does not exempt the rental profits from tax or remove any reporting obligations.

UK rental property before arrival

UK tax residence and your arrival year

Your UK tax residence is determined under the Statutory Residence Test, which considers days spent in the UK, work, homes and other connections. Spending fewer than 183 days in the UK does not automatically make you non-resident.

Split-year treatment may apply in your arrival year if specific conditions are met. Your tax residence does not necessarily begin on your visa start date or the date you physically move.

The four-year Foreign Income and Gains regime

UK tax residents are generally taxable on worldwide income and gains unless a relief or exemption applies. Keeping money overseas does not, by itself, prevent UK taxation.

We review overseas property, savings, investments, insurance policies and business interests, including the timing of income and asset disposals. Different products can have different tax treatments, so not all overseas income or gains qualify for FIG relief.

For former remittance basis users, bringing previously untaxed foreign income or gains to the UK may still trigger tax. The abolition of the remittance basis does not automatically make those funds tax-free; transitional provisions may be relevant.

Inheritance Tax and long-term residence

From 6 April 2025, the scope of UK Inheritance Tax on overseas assets generally depends on long-term UK residence rather than domicile. Broadly, being UK tax resident for at least ten of the previous twenty tax years can bring overseas assets within scope.

The rules can continue to apply after leaving the UK, while UK assets may be taxable even before long-term residence is established. We help you understand how your residence history and asset ownership affect your position.

Overseas companies managed from the UK

Moving to the UK while continuing to manage a Hong Kong or other overseas company can create UK tax and reporting obligations for the company.

An overseas-incorporated company may become UK tax resident if its central management and control is exercised in the UK, subject to any applicable tax treaty. Its UK activities may also create obligations even where it remains non-UK resident.

We review management arrangements and potential registration and reporting requirements, helping you understand the implications before changes are made.

Moving to the UK can affect how your income, investments, property and business interests are taxed. Reviewing your position before relocating gives you time to understand the rules, consider available reliefs and make informed decisions.

At Tika Accountancy, we help individuals and families, particularly those with connections to Hong Kong, plan for UK tax residence and their ongoing reporting obligations. If you have already arrived, we can also review your position and identify any action required.

Overseas income, assets and transfers to the UK

From 6 April 2025, the four-year Foreign Income and Gains (FIG) regime replaced the remittance basis. Qualifying individuals can claim relief on eligible foreign income and gains arising within their first four tax years of UK residence, following at least ten consecutive tax years of non-UK residence.

Relief is not automatic: claims must be made through Self Assessment for each relevant year. Income and gains covered by a valid claim can be brought to the UK without an additional UK tax charge.

Claiming relief means losing the Income Tax Personal Allowance and Capital Gains Tax annual exempt amount for that year, and other restrictions may apply. The four-year period starts with your first UK-resident tax year; choosing not to claim does not extend it. We assess whether you qualify and whether claiming is beneficial.

How we can help

Our advice is tailored to your residence history, relocation plans, income sources and assets. We can help you:

• Assess UK tax residence and split-year treatment

• Review FIG eligibility and the implications of claiming

• Consider the timing of income, disposals and transfers

• Review overseas company tax residence and UK reporting requirements

• Understand Inheritance Tax exposure

• Plan for Self Assessment registration and ongoing compliance

Contact us to arrange a consultation and discuss your circumstances.