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.
What actually decides where you pay
- 1Days. Counted separately against each country's tax year, which start on different dates.
- 2Ties. Home, family, work and property weigh as much as days in every test we cover.
- 3The exit charge. Australia deems a sale, the United States taxes renunciation, the United Kingdom claws back a quick return.
- 4The treaty tie breaker, if both countries still claim you.
- 5What the new country taxes: worldwide income, or only money earned inside it.
- 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.
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
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
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
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
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
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
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 - 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
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
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
- HMRC: statutory residence test (RDR3)
- GOV.UK: tax if you leave the UK to live abroad
- GOV.UK: form P85, leaving the UK
- HMRC: non resident landlord scheme
- OECD: tax treaties and residence tie breakers
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 builderOffshore, honestly
Moving your paperwork is not the same as moving yourself. See what an offshore structure really saves.
Offshore plan builderGet a human on it
Cross border moves are the case where an accountant in both countries pays for itself.
Hire an accountant