UK HMRC Expat Tax & Finance Hub 2026/27
Check the UK tax rules that matter when you live, work, invest or return to the UK — including tax residence, FIG relief, Income Tax, Capital Gains Tax, National Insurance and Self Assessment.
2026/27 at a Glance
UK Income Tax Rates 2026/27 (England, Wales & Northern Ireland)
| Tax Band | Income Range | Rate | Notes |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | 0% | Tapered: loses £1 per £2 earned over £100,000; zero above £125,140 |
| Basic Rate | £12,571 – £50,270 | 20% | Most employees pay 20% in this band via PAYE |
| Higher Rate | £50,271 – £125,140 | 40% | England, Wales & Northern Ireland; Scottish Income Tax uses separate Scottish bands and rates |
| Additional Rate | Over £125,140 | 45% | No Personal Allowance applies at this level |
Capital Gains Tax (CGT) Rates 2026/27
| Asset Type | Basic Rate Taxpayer | Higher/Additional Rate | Annual Exempt Amount |
|---|---|---|---|
| Most Assets (shares, crypto, etc.) | 18% | 24% | £3,000 |
| Residential Property | 18% | 24% | |
| Business Asset Disposal Relief (BADR) | 18% from 6 April 2026 | £1,000,000 lifetime limit, subject to qualifying conditions | |
Which Rule Do You Need?
Start with SRT
Establish tax residence first. Foreign-income and gains consequences depend heavily on residence status.
Check FIG eligibility
Test the 10-year non-residence history and first-4-years-of-residence conditions before assuming foreign income or gains qualify for relief.
Check Self Assessment
Determine whether a return is required and whether SA106, SA108 or SA109 applies to the transaction or residence issue.
Key HMRC Tax Topics for Expats
Statutory Residence Test (SRT)
Work through the UK Statutory Residence Test in the correct order: automatic overseas tests, automatic UK tests and, where required, sufficient ties. Split-year treatment can apply in qualifying circumstances. Residence normally affects how UK tax applies to foreign income and gains.
FIG Regime & Post-2025 Non-Dom Changes
The remittance basis was abolished from 6 April 2025 and replaced by the 4-year Foreign Income and Gains regime. Qualifying new UK residents who have been non-UK resident for at least 10 consecutive tax years can claim relief on eligible foreign income and gains during their first 4 tax years of residence.
National Insurance Contributions (NIC)
Standard Category A employee Class 1 NIC is 8% between £12,570 and £50,270 and 2% above. Employer secondary Class 1 NIC is generally 15% above the £5,000 Secondary Threshold. Self-employed Class 4 is 6% between £12,570 and £50,270 and 2% above. Class 3 voluntary NIC is £18.40/week in 2026/27.
Self Assessment, SA106 & SA109
Where Self Assessment is required, SA106 records foreign income and gains while SA109 records residence and FIG information. Having foreign income, gains or international connections does not by itself mean every person must file a return.
Comprehensive HMRC Tax & Expat Compliance Knowledgebase
Browse all 20 tax and compliance topics covering thresholds, filing deadlines and penalties. The underlying topic dataset should be kept separately aligned with each current tax year and official source.
HMRC Statutory Residence Test (SRT) 2026: Complete UK Tax Residency Guide
Use HMRC's Statutory Residence Test (SRT) to determine whether you are UK tax resident for a UK tax year. The test applies the automatic overseas tests, automatic UK tests and, where necessary, the sufficient ties test. Split-year treatment may divide a qualifying year into UK and overseas parts.
The SRT under Finance Act 2013, Schedule 45 determines whether HMRC taxes your worldwide income and gains or only UK-source income. It evaluates 3 automatic overseas tests, 3 automatic UK tests, and 5 UK ties (Family, Accommodation, Work, 90-Day, and Country).
UK Non-Dom Abolition & 4-Year FIG Regime 2026: Complete Guide
The UK abolished the remittance basis and the domicile-based non-dom tax regime from 6 April 2025. UK residents are now generally taxed on the arising basis on worldwide income and gains, while qualifying new UK residents who have been non-UK resident for at least 10 consecutive tax years can claim Foreign Income and Gains (FIG) relief for their first 4 tax years of UK residence.
Replaces the centuries-old Remittance Basis from 6 April 2025. Qualifying individuals pay 0% UK tax on foreign income and gains for their first 4 years of UK residence and can bring those funds into the UK with zero remittance tax. Temporary Repatriation Facility (TRF) allows past non-doms to remit pre-2025 foreign income at a reduced 12% tax rate (rising to 15% in 2027/28). Inheritance Tax (IHT) shifts to a residence-based model with a 10-year tail.
HMRC Self Assessment SA100, SA106 & SA109 2026: Foreign Income, Residence and FIG
Complete 2026 guide to UK Self Assessment reporting using SA100 and the relevant supplementary pages for foreign income, foreign gains, UK residence, split-year treatment, the Foreign Income and Gains (FIG) regime and foreign tax relief.
Under the Taxes Management Act 1970 and post-6 April 2025 tax reforms, the remittance basis is abolished. SA100 serves as the core return; SA106 reports foreign income, gains, and claims Foreign Tax Credit Relief (FTCR); SA109 reports residence, day counts, statutory split-year cases 1–8, and claims 4-year FIG relief via Box 28 (income) and Box 29 (gains).
National Insurance for Expats, Posted and Seconded Workers 2026
Guide to UK National Insurance for expatriates, internationally mobile employees, posted and seconded workers, and people living or working overseas. Covers Class 1, Class 3 and Class 4 contributions, the domestic 52-week posted-worker rules, social security agreements, certificates of coverage, the UK-India agreement effective from 15 July 2026, and voluntary contributions for periods abroad.
UK National Insurance liability is governed by social security legislation, the physical place of work, ordinary residence, and international reciprocal agreements. Under domestic rules, qualifying overseas workers posted to Great Britain may benefit from a 52-week NIC exemption, while UK workers sent abroad can remain liable for 52 weeks. Where bilateral social security agreements or Double Contribution Conventions apply (such as the UK-India agreement effective 15 July 2026 with up to 60 months exemption), certificates of coverage (e.g. CA9107 or EPFO CoC) prevent double contributions. From 6 April 2026, voluntary Class 2 contributions abroad are abolished, requiring expats to use Class 3 subject to a 10-year UK residence or contribution test.
US-UK Double Tax Treaty 2026: Pensions, 401(k), IRA & UK ISA
Key US-UK tax treaty rules for U.S. citizens, green-card holders and dual residents, covering pension taxation, 401(k), IRA, UK pension contributions, double-tax relief and the U.S. treatment of UK ISAs and PFIC investments.
The US-UK Double Taxation Convention (2001, in force 2003) governs cross-border taxation for dual-resident individuals and US citizens in the UK. Article 17 assigns primary taxation of periodic pensions to the country of residence, while lump sums are generally taxed where the scheme is established. Article 18(5) allows qualifying US citizens resident in the UK to deduct or exclude UK workplace pension contributions on Form 1040. UK ISAs are not tax-exempt under US federal law, and non-US pooled funds within an ISA trigger complex US PFIC reporting under Form 8621.
Stamp Duty Land Tax (SDLT) Non-Resident Surcharge 2026
Current SDLT rules for residential property in England and Northern Ireland, including the 2% non-UK resident surcharge, 5% higher rates for additional dwellings, current residential rates, first-time buyer relief and the surcharge refund rules.
Current SDLT rules for residential property in England and Northern Ireland, including the 2% non-UK resident surcharge, 5% higher rates for additional dwellings, current residential rates, first-time buyer relief and the surcharge refund rules.
UK Capital Gains Tax (CGT) & Business Asset Disposal Relief 2026
Current UK Capital Gains Tax rates, the £3,000 Annual Exempt Amount, residential property reporting and Business Asset Disposal Relief (BADR) rules for disposals from 6 April 2026.
Current UK Capital Gains Tax rates, the £3,000 Annual Exempt Amount, residential property reporting and Business Asset Disposal Relief (BADR) rules for disposals from 6 April 2026.
UK ISAs for Expats & US Taxpayers: 2026 Rules and PFIC Risks
UK ISA rules for people moving abroad, including the £20,000 annual allowance, continued ownership after leaving the UK, and the U.S. federal tax and PFIC issues that can arise for U.S. citizens and other U.S. persons.
Individual Savings Accounts (ISAs) provide completely tax-free interest, dividends, and capital gains under UK statutory rules for UK residents. When leaving the UK, you do not have to close your ISA; existing investments and cash remain tax-sheltered in the UK, and accounts can still be transferred between providers, but new subscriptions are prohibited while non-resident. For U.S. citizens, green card holders, and U.S. tax residents living in the UK, ISAs present serious traps: the IRS treats ISAs as foreign accounts with no treaty protection, and holding foreign pooled funds (OEICs, unit trusts, UCITS ETFs) inside a Stocks & Shares ISA triggers U.S. Passive Foreign Investment Company (PFIC) rules, requiring complex Form 8621 annual reporting and punitive Section 1291 interest charges.
UK Inheritance Tax (IHT) 2026: Thresholds & Residence-Based Rules
UK Inheritance Tax rates, nil-rate bands, Residence Nil-Rate Band and the residence-based rules for UK and overseas assets from 6 April 2025.
Inheritance Tax (IHT) applies to the net value of an estate passed on death, as well as certain lifetime gifts and transfers into trusts. On 6 April 2025, the UK implemented a major structural reform, abandoning the centuries-old domicile and deemed-domicile regime in favor of a modern residence-based system. Under the new statutory framework, individuals who have been UK tax resident for at least 10 out of the 20 tax years preceding a chargeable event are classified as 'long-term UK residents' and are subject to UK IHT on their worldwide assets. Furthermore, leaving the UK does not immediately extinguish IHT liability: an 'IHT tail' of between 3 and 10 tax years continues to apply to worldwide assets based on prior UK residence history.
UK Workplace Pensions, SIPP & QROPS Overseas Transfers 2026
Current UK rules for workplace pensions, SIPPs, pension tax relief, the £60,000 annual allowance, the £268,275 standard lump sum allowance and transfers to Qualifying Recognised Overseas Pension Schemes (QROPS).
Under UK pension legislation, workplace pensions operate on automatic enrolment with a statutory minimum 8% total contribution on qualifying earnings (at least 3% from employers). Self-Invested Personal Pensions (SIPPs) offer extensive investment flexibility within the UK tax-privileged pension wrapper. Following the permanent abolition of the Lifetime Allowance, tax-free lump sums are regulated by the standard Lump Sum Allowance (LSA) of £268,275 and the Lump Sum and Death Benefit Allowance (LSDBA) of £1,073,100. For British expats and international workers, transferring UK pension rights to a Qualifying Recognised Overseas Pension Scheme (QROPS) requires careful adherence to HMRC statutory exemption tests to avoid the 25% Overseas Transfer Charge.
Temporary Repatriation Facility (TRF) 12% & 15% Tax Rate for Former Non-Doms
Under Finance Act 2025 statutory non-dom transition rules, former remittance basis users can designate unremitted pre-6 April 2025 foreign income and gains (FIG) to pay a reduced flat tax rate of 12% in 2025/26 and 2026/27, rising to 15% in 2027/28. Once designated and taxed, the underlying funds can be remitted to the UK at any time—now or in future years—without any additional UK Income Tax or Capital Gains Tax. This statutory guide breaks down qualifying criteria, the mixed fund relaxation, designation mechanics via Self Assessment (SA109), worked calculations, traps with offshore trusts, and the strict 5 April 2028 facility sunset.
The UK Government abolished the concept of domicile for tax purposes with effect from 6 April 2025, replacing the remittance basis regime with a residence-based system (the 4-year FIG regime). To manage the transition for long-term UK residents holding unremitted overseas income and capital gains accumulated under the remittance basis, Parliament enacted the Temporary Repatriation Facility (TRF). Without the TRF, remitting those historic overseas funds into the UK would trigger top marginal income tax rates of 45% (or 39.35% for dividends) and capital gains tax of 24%, plus punitive statutory ordering under the mixed fund rules. TRF creates a 3-year statutory bridge allowing former remittance basis claimants to designate and remit these historic pools at an unprecedented 12% (years 1 and 2) or 15% (year 3) flat rate, unlocking capital for UK investment, real estate purchase, business angel funding, or living expenses.
Scottish Income Tax Rates & Bands 2026/27 vs Rest of UK
Current Scottish Income Tax rates and bands for 2026/27, compared with England, Wales and Northern Ireland, including who is a Scottish taxpayer and how Scottish rates apply to non-savings and non-dividend income.
Under the Scotland Act 2016, the Scottish Parliament has devolved powers to set income tax rates and thresholds on non-savings and non-dividend income for individuals who are Scottish taxpayers. For 2026/27, Scotland maintains its distinctive six-band tax structure, featuring indexation of the Starter (£16,537) and Basic (£29,526) thresholds, alongside higher marginal rates for upper earners (42% Higher, 45% Advanced, and 48% Top). Crucially, UK Personal Allowance rules, savings interest rates, and dividend taxation remain reserved to Westminster and apply uniformly across the whole of the UK.
Section 24 Mortgage Interest Tax Restriction for UK Residential Landlords 2026
How Section 24 restricts finance-cost relief for individual landlords of residential property, replacing the direct deduction with a basic-rate tax reduction, and how the rules differ for property companies.
Under Section 24 of the Finance (No. 2) Act 2015 (codified in ITTOIA 2005 sections 272A & 274A and ITA 2007 section 274AA), individual landlords of residential property are prohibited from deducting mortgage interest and other finance costs when computing net property business profits. Instead, tax relief is given as a tax reduction equal to 20% of the lowest of the relevant finance costs, property business profits (after brought-forward losses), and adjusted total income above the Personal Allowance. By taxing gross property profits before financing costs, landlords with significant gearing are frequently pushed into higher (40%) or additional (45%) tax brackets and risk having their Personal Allowance tapered above £100,000.
UK Dividend Tax Rates & Allowance 2026/27
UK Dividend Allowance, dividend tax rates for 2026/27, how dividends interact with Income Tax bands, and key considerations for company directors taking salary and dividends.
Dividends in the UK are taxed as the top slice of income after all other non-dividend income (such as salary, pensions, and rental profits) and the Personal Allowance. The £500 Dividend Allowance functions as a 0% nil-rate band. Dividends exceeding £500 are taxed according to the individual's Income Tax band: 10.75% for basic-rate payers, 35.75% for higher-rate payers, and 39.35% for additional-rate payers. Dividends are free from employee and employer National Insurance contributions, but company distributions require sufficient retained distributable reserves.
UK Personal Allowance Taper: The £100,000 Tax Trap 2026/27
How the £12,570 Personal Allowance is withdrawn by £1 for every £2 of adjusted net income above £100,000, producing a 60% effective marginal Income Tax rate for many taxpayers between £100,000 and £125,140.
Under Section 35 of the Income Tax Act 2007, an individual's standard Personal Allowance (£12,570 for 2026/27) is reduced by £1 for every £2 by which their adjusted net income exceeds £100,000. For an individual in England, Wales, or Northern Ireland paying the 40% higher rate, each £100 of income in the taper band suffers £40 direct income tax while losing £50 of tax-free allowance (which creates an additional £20 tax charge), creating an effective 60% marginal tax rate. In Scotland, higher devolved rates (42% Higher and 45% Advanced) mean the effective rate can reach up to 63% or 67.5%. Adjusted net income is calculated after deducting gross qualifying pension contributions and Gift Aid donations grossed up by 1.25.
UK VAT Registration Threshold & Flat Rate Scheme 2026
UK VAT registration threshold, compulsory registration rules, the 30-day forward test, non-established taxable persons, VAT return deadlines, Making Tax Digital and the Flat Rate Scheme.
Under the Value Added Tax Act 1994 (VATA 1994 Schedule 1), UK businesses must register for VAT if their VAT-taxable turnover exceeds £90,000 on a rolling 12-month basis or if they expect it to exceed £90,000 within the next 30 days alone. Non-Established Taxable Persons (NETPs) have no threshold (£0) when making taxable UK supplies. Small businesses with expected taxable turnover up to £150,000 can join the Flat Rate Scheme (FRS), paying a fixed sector percentage on gross turnover, though limited cost traders face a 16.5% rate. All VAT-registered businesses must maintain digital records and submit returns through Making Tax Digital (MTD) compliant software.
UK IR35 Off-Payroll Working Rules for Contractors 2026
How the UK off-payroll working rules determine whether a contractor providing services through a personal service company or other intermediary should be taxed broadly like an employee.
The UK off-payroll working rules (ITEPA 2003 Part 2 Chapter 10) apply where an individual provides services to a client through an intermediary (typically a personal service company) and, but for the intermediary, would be an employee for tax purposes. For public-sector clients and medium/large private-sector clients, the client must assess employment status with reasonable care and communicate a Status Determination Statement (SDS). Where inside IR35, the fee-payer must operate PAYE. Where the end-client is a small private business, the original Chapter 8 rules apply, placing determination and tax responsibility on the contractor's PSC.
UK-India Double Taxation Agreement: Pensions, Interest & Foreign Tax Relief 2026
Key UK-India Double Taxation Agreement rules for residents receiving pensions, interest and other Indian-source income, including Article 20 pensions, Article 12 interest, UK foreign-tax relief and India's Form 67 requirements.
Under the UK-India Double Taxation Convention (1993, as modified by the Multilateral Instrument), non-government pensions and annuities paid to a resident of one Contracting State are taxable only in that state under Article 20. Government service pensions are reserved to the paying government state under Article 19. Under Article 12, Indian-source interest (such as NRO savings and fixed deposits) received by a UK resident is subject to a maximum Indian withholding tax of 15%, provided the taxpayer submits a UK Certificate of Residence (TRC) and Indian Form 10F. While NRE account interest is exempt from Indian income tax under Section 10(4) of the Indian Income-tax Act, UK tax residents must declare and pay UK tax on that interest under worldwide taxation rules, with foreign tax credit relief available under Article 24.
HMRC Cryptoassets Tax Rules 2026: CGT, Income Tax & Section 104
UK tax treatment of cryptoassets for individuals, including Capital Gains Tax on investment disposals, Income Tax on staking, mining and certain other receipts, and HMRC's same-day, 30-day and Section 104 matching rules.
HMRC treats exchange tokens held as investments by individuals as subject to Capital Gains Tax upon disposal. Disposals include fiat sales, token swaps, purchasing goods/services, or gifting. Allowable acquisition costs must be determined using the statutory matching sequence: same-day transactions, 30-day bed-and-breakfast acquisitions, and then Section 104 pooling. Tokens received from staking or mining are taxable as miscellaneous income when received (unless trading rules apply), establishing a base cost for future CGT disposals.
UK Corporation Tax Rates 2026/27: 19% Small Profits to 25% Main Rate
UK Corporation Tax rates for 2026/27, including the 19% Small Profits Rate, 25% Main Rate, Marginal Relief between £50,000 and £250,000, associated-company rules and filing and payment deadlines.
For the financial year 2026/27, UK Corporation Tax operates a tiered rate structure. Companies with taxable profits of £50,000 or less pay the Small Profits Rate of 19%. Companies with taxable profits exceeding £250,000 pay the Main Rate of 25%. Between £50,000 and £250,000, Marginal Relief applies using a statutory fraction of 3/200, effectively smoothing the transition between 19% and 25%. The £50,000 and £250,000 limits are reduced proportionately for accounting periods shorter than 12 months and are divided by the total number of associated companies (1 + N). CT600 tax returns are due within 12 months of the period end, while tax payment is generally due 9 months and 1 day after the period end, except for large companies (£1.5m+) which must pay via quarterly instalment payments (QIPs).
National Insurance Contributions (NIC) 2026/27
| NIC Class | Who Pays | Rate | Notes |
|---|---|---|---|
| Class 1 (Employee Primary) | Employees on payroll | 8% on £12,570–£50,270 / 2% above | Standard Category A rates; category letters can differ |
| Class 1 (Employer Secondary) | Employers | 15% above £5,000 secondary threshold | Special employer categories can have different thresholds/rates |
| Class 4 (Self-Employed) | Self-employed individuals | 6% on profits £12,570–£50,270 / 2% above | Paid through Self Assessment |
| Class 2 (Self-Employed) | Eligible self-employed | £3.65 / week | Optional in 2026/27 where the person chooses to pay and qualifies |
| Class 3 (Voluntary) | People filling qualifying NI gaps | £18.40 / week | Separate rules apply to voluntary contributions for periods abroad |
Frequently Asked Questions (6 FAQs)
- • HM Revenue & Customs (HMRC): gov.uk/government/organisations/hm-revenue-customs
- • HMRC RDR3 Statutory Residence Test: gov.uk/rdr3-statutory-residence-test
- • HMRC Income Tax Rates & Allowances: gov.uk/income-tax-rates
- • HMRC Capital Gains Tax Rates: gov.uk/capital-gains-tax/rates
- • GOV.UK National Insurance Rates & Allowances: gov.uk/national-insurance
- • GOV.UK Non-Dom Tax Changes: gov.uk/changes-non-uk-domicile-taxation
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