International tax
Individuals & Expats
International tax helps you understand how your income, property, or investments are taxed when you live, work, or move abroad. It ensures you avoid paying tax twice and stay compliant with both UK and overseas rules.
Businesses
For companies operating across borders, international tax covers cross-border transactions, transfer pricing, and double tax agreements. It helps businesses stay compliant, reduce unnecessary tax costs, and operate confidently in the global marketplace.
Investors
If you hold overseas assets or investments, international tax rules determine how returns are taxed in the UK and abroad. The right planning can protect your wealth and ensure you benefit from available reliefs and tax treaties.
FAQ
Do I need to pay UK tax on income earned abroad?
Yes, if you’re a UK resident, you’re generally liable to pay UK tax on your worldwide income, including earnings from foreign sources. However, you may be eligible for reliefs such as the Foreign Income and Gains Relief, which can reduce or eliminate UK tax on foreign income.
How can I avoid being taxed twice on the same income?
The UK has Double Taxation Agreements (DTAs) with many countries to prevent double taxation. These agreements allocate taxing rights between countries and may allow you to claim relief for foreign taxes paid. It’s essential to understand the specific provisions of the relevant DTA.
What is a Certificate of Residence, and do I need one?
A Certificate of Residence is an official document issued by HM Revenue & Customs (HMRC) confirming your UK tax residency status. It’s often required to claim relief under a DTA or to prove your residency to foreign tax authorities.
Do I need to file a UK tax return if I live abroad?
If you’re a UK resident, you must file a Self Assessment tax return, even if you’re living abroad. This ensures that all your income, including foreign income, is reported and taxed correctly.
Can I claim tax relief for foreign taxes paid?
Yes, if you’ve paid foreign tax on income that’s also taxable in the UK, you may be eligible for Foreign Tax Credit Relief. This relief allows you to offset the foreign tax against your UK tax liability, reducing the risk of double taxation.
How does the UK's residency status affect my tax obligations?
Your tax obligations in the UK depend on your residency status. If you’re a UK resident, you’re generally taxed on your worldwide income. If you’re non-resident, you’re usually only taxed on UK income. The Statutory Residence Testdetermines your residency status based on the number of days spent in the UK and other factors.
What happens if I don't declare foreign income?
Failing to declare foreign income can lead to penalties, interest charges, and potential legal action. HM Revenue & Customs (HMRC) has access to extensive international data and actively pursues undeclared income.
How can I ensure compliance with international tax laws?
Navigating international tax laws can be complex. Speaking with us ensures you gain access to specialist tax advice, helping you stay compliant, optimise your global tax position, and make informed decisions with confidence.