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Relocation

Moving country is the biggest legal saving there is, and the easiest to get wrong

Answer nine short questions. You get a straight read on whether your old country still taxes you, what it charges on the way out, and the exact steps, forms and dates in the right order.

A packed case beside a passport and a folder of papers

What actually decides where you pay

  1. 1Days. Counted separately against each country's tax year, which start on different dates.
  2. 2Ties. Home, family, work and property weigh as much as days in every test we cover.
  3. 3The exit charge. Australia deems a sale, the United States taxes renunciation, the United Kingdom claws back a quick return.
  4. 4The treaty tie breaker, if both countries still claim you.
  5. 5What the new country taxes: worldwide income, or only money earned inside it.
  6. 6Telling both tax offices, in writing, with dates.

Your move

Nothing is saved or sent. Answer as honestly as you would to a tax office, because that is who checks.

I am leaving

I am moving to

Include work trips, holidays and family visits. Part days usually count.

Where you stand

probably not resident

Ties you keep

0

Home, family, work, property, company, ninety days

Days back

20

Counted against the old tax year

On these answers you probably stop being resident in the United Kingdom, so only income arising there stays taxable.

  • You expect 20 days back in the United Kingdom next year.
  • You keep no ties we asked about.

The bill on the way out

This is the part relocation sellers leave out.

No general exit tax

The United Kingdom does not charge a tax on leaving, which is the single biggest difference from Australia.

Where you live decides what you pay. Plan the move before you pack.

Landing in the new country

  • Check whether the new country taxes worldwide income or only money earned inside it. That single difference is the whole point of moving.

  • Check the treaty with your old country for the residence tie breaker, and for pensions, property and dividends.

  • Low headline tax usually means the money is collected elsewhere, through consumption taxes, levies or fees. Compare the whole cost.

Your steps, in order

  1. 1

    Count the days properly, for both tax years

    Tax years start on different dates: 6 April in the United Kingdom, 1 January in the United States, 1 July in Australia. Count arrivals and departures against each one separately.

    When: Before you book anythingWho: You, with a calendar
  2. 2

    Write down every tie, honestly

    Home, family, work, doctor, car, club, storage unit. This list is what an inspector asks for, so make it before you need it.

    When: Before the moveWho: You
  3. 3

    Price the exit charges of the country you are leaving

    This is the step people skip, and it is the expensive one. Australia deems a sale, the United States taxes on renunciation, the United Kingdom claws back gains if you return soon.

    When: At least a tax year before you go, if you canWho: An accountant in the old country
  4. 4

    Read the treaty tie breaker

    If both countries claim you, the treaty decides using permanent home, centre of vital interests, habitual abode and then nationality. Knowing the order tells you which facts matter.

    When: Before the move dateWho: You, then an adviser if it is close
  5. 5

    Decide the order of your sales and transfers

    Selling shares, crypto, a second property or a business before or after your residence change date can change the tax completely.

    When: Once your move date is fixedWho: You with an adviser in both countries
  6. 6

    Tell the old tax office you have gone

    Leaving quietly is what creates penalty letters two years later. Put the departure date in writing.

    When: On or straight after the moveWho: YouForm P85, or the residence pages of your self assessment return

    Form P85, leaving the UK

    Where on it: Your leaving date in section 1, with parts 2 and 3 of your P45 attached

    Deadline: As soon as you have left, once your final UK pay has been made

    GOV.UK
  7. 7

    Register properly in the new country

    A tax number, a payroll registration and health cover in the first month save a year of corrections later.

    When: First month after arrivalWho: You
  8. 8

    Keep the evidence for six years

    Boarding passes, leases, utility bills, school letters and payslips in the new country. Residence arguments are won on documents, not memory.

    When: OngoingWho: You

The right paperwork keeps the saving legal and yours.

Every form, box and deadline for this move

Departure paperwork first, then what the new country wants. Check each box number on the official page before you file.

On the way out

Form P85, leaving the UK

Tells HMRC you have gone and claims back tax over-collected in the part year.

Box or line:
Your leaving date in section 1, with parts 2 and 3 of your P45 attached
Deadline:
As soon as you have left, once your final UK pay has been made
GOV.UK

On the way out

Self Assessment SA109 residence pages

The only place your residence position is actually declared.

Box or line:
Box 1 to claim non residence, box 3 for split year treatment, boxes 10 to 12 for days spent in the UK
Deadline:
31 January after the 5 April year end (31 October on paper)
GOV.UK

On arrival

Local registration and tax number

Your registration date is the evidence your new residence started.

Box or line:
Whatever the new country asks for, kept with the date you registered
Deadline:
First month after arrival
OECD

Every UK date and form in one list

P85, SA109 and NRL1 are part of a move, but the ordinary Self Assessment dates still apply in the year you go. The UK deadline page lists all of them, with the penalty for missing each one.

Fill in the return for the country you land in

Enter your figures once and the tax year page fills the real return for you: Self Assessment for the UK, Form 1040 with Schedule 1 and Schedule 2 for the United States, and the Australian individual return with its supplementary section, business schedule and Medicare items. It saves privately and prints.

Build my return, UK, US or Australia

Ask people who have already moved

The Moving country room is open to members and accountants. Post your dates, your ties and the country pair, and get answers in public.

Open the Moving country room

Most costly mistakes happen in the first year abroad.

What catches people out

  • A visa, a second passport or a residence by investment scheme does not decide your tax residence. Where you actually live does.
  • Being taxed abroad does not stop your old country taxing you. Relief comes from a treaty claim, and claims are not automatic.
  • Never sign paperwork saying you live somewhere you do not. That is not planning, it is fraud, and it is the one thing we will not help with.

Where these rules come from

Try it without moving first

Most people asking about relocation want a smaller bill, not a new life. See what your own country already offers.

Open the strategy builder

Offshore, honestly

Moving your paperwork is not the same as moving yourself. See what an offshore structure really saves.

Offshore plan builder

Which country, and what it really costs

Twenty six low tax countries with the published rates, the residence conditions and the catch in each one.

Low tax countries

Bank closed your account?

Your rights after a closure or refusal, and the banks and regulated providers that publish your trade as welcome.

Where you can bank

Get a human on it

Cross border moves are the case where an accountant in both countries pays for itself.

Hire an accountant

People are talking about tax now

A tax worry gets lighter when you can ask it.

Read openly, post under a nickname, or get a public answer from a verified professional. Every useful answer can save the next person money too.

Join the tax conversations