Last updated: 16 October 2026
What is split year treatment?
For tax, you are either UK resident or non-resident for a whole tax year under the statutory residence test. That can be unfair if you leave the UK part way through the year. Split year treatment divides the year into a UK part, when you are taxed as a resident, and an overseas part, when you are generally taxed only on UK income, as a non-resident would be.
Do you qualify?
Split year treatment applies only if you are UK resident for the year and your circumstances match one of eight cases. The three cases for people leaving the UK are:
| Case | Who it is for | Key conditions |
| Case 1 | Starting full-time work abroad | Work full-time overseas, with limited UK days and UK workdays for the rest of the year |
| Case 2 | Partner of someone in case 1 | Leave to live with a partner working abroad, and spend limited time in the UK |
| Case 3 | Ceasing to have a UK home | Have no UK home from the date you leave, and set up a home or close ties abroad within six months |
Cases 4 to 8 cover people arriving in or returning to the UK.
Example
Hannah moves to Canada on 1 October 2026 to start a full-time job. She was UK resident in 2025/26 and will be non-resident in 2027/28. Under case 1, 2026/27 is split. Her UK salary from April to September is taxed as UK income. Her Canadian salary from 1 October 2026 is not taxable in the UK. She claims split year treatment on her 2026/27 Self Assessment return using the residence pages.
What stays taxable in the UK
Even in the overseas part of the year and once non-resident, you remain taxable in the UK on some income, such as UK rental income and UK pensions. Non-residents selling UK property must report within 60 days and may pay CGT.
Temporary non-residence
If you were UK resident in at least four of the seven years before leaving and return within five years, certain gains and income received while abroad can be taxed when you come back. This mainly affects people who sell assets or take large dividends from a close company while overseas.
Practical steps when leaving
- Tell HMRC you are leaving, usually on your tax return or form P85.
2. Decide what to do with UK property and bank accounts.
3. Check your State Pension record; you may be able to pay voluntary contributions while abroad.
4. Review ISAs, as you cannot pay into them once non-resident.
5. Keep evidence of your departure date, new home and job.
Inheritance tax
Since April 2025, inheritance tax depends on long-term UK residence. If you have been UK resident for at least 10 of the last 20 years, you stay within UK inheritance tax on worldwide assets for between three and ten years after leaving.
Frequently asked questions
Is split year treatment automatic?
It applies if you meet the conditions, but you claim it on your return.
Can I get a tax refund when I leave?
Often yes, if you have paid PAYE on a full year’s allowance but only earned for part of the year.
Do I need to file a UK return after leaving?
Only if you have UK income that requires it.
Does the 90-day rule matter?
Visits to the UK are limited after you leave; check the day limits for your case.
Related: non-resident status and job changes, IHT rules for returning expats and non-dom changes.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with UK residence and leaving the UK. See our personal tax accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
