The Statutory Residence Test - three steps, three outcomes
The Statutory Residence Test (SRT) was introduced in 2013 and is set out in HMRC's RDR3 Guidance Note. It is the legal test that decides - for every UK tax year - whether you are UK tax resident or not. There is no halfway house. You are either resident for the whole tax year (and taxed on worldwide income), non-resident (and taxed only on UK-source income), or eligible for split-year treatment (a single tax year carved in two).
The SRT runs through three steps in order. As soon as you pass any step, you stop - the later steps don't apply.
Step 1: the automatic overseas tests
You are automatically non-UK resident for the tax year if any one of these applies:
- You were UK resident in one or more of the previous three tax years and you spent fewer than 16 days in the UK in the current tax year.
- You were UK resident in none of the previous three tax years and you spent fewer than 46 days in the UK in the current tax year.
- You worked full-time abroad across the tax year (averaging at least 35 hours/week), spent fewer than 91 days in the UK, and worked in the UK for fewer than 31 days.
For most retirees moving abroad, the first test is the one that matters. If you leave the UK in April 2026 and stay out of it almost completely for 2026/27, you'll be non-UK resident for the whole year. The full-time-work test rarely applies because most retirees aren't working full-time.
Step 2: the automatic UK tests
If none of Step 1 applies, you check Step 2. You are automatically UK resident if:
- You spend 183 days or more in the UK in the tax year.
- You have a home in the UK for at least 91 consecutive days (and you are present in that home on at least 30 days), and during that period you have either no home abroad or you spend fewer than 30 days at any home abroad.
- You work full-time in the UK for any 365-day period that overlaps with the tax year.
Step 3: the sufficient ties test
If neither Step 1 nor Step 2 settles it, the sufficient ties test kicks in. It combines days spent in the UK with a count of your UK "ties":
- Family tie - UK-resident spouse, civil partner or minor child
- Accommodation tie - a home in the UK available to you for at least 91 continuous days, and you spend at least one night there
- Work tie - 40 or more days of UK work (3+ hours per day)
- 90-day tie - you spent more than 90 days in the UK in either of the previous two tax years
- Country tie (only for "leavers" - UK resident in any of the previous three years) - you spent more days in the UK than in any other single country
The more ties you have, the fewer days you can spend in the UK before becoming UK resident. For someone who has been UK resident in the previous three years (a "leaver"), the day-count thresholds are: 4 ties → resident at 16+ days; 3 ties → 46+ days; 2 ties → 91+ days; 1 tie → 121+ days; 0 ties → 183+ days. For an "arriver" (not UK resident in any of the previous three years), the thresholds are more generous - and the country tie does not apply.
Situation: Margaret has a flat in Marbella and a small UK cottage where her grown-up daughter lives. She splits her year roughly 50/50 between the two.
Margaret was UK resident for the last 15 years, so she is a "leaver" under the SRT. Her UK ties:
- Accommodation tie: Yes - UK cottage available to her year-round.
- Family tie: No - daughter is adult, not a minor or spouse.
- Work tie: No - fully retired.
- 90-day tie: Yes - she spent 180+ days in the UK in 2025/26.
- Country tie: Depends. If she spends 183 days in UK and 182 in Spain, yes.
Margaret has at least 2 ties (potentially 3). With 2 ties, she becomes UK resident if she spends 91+ days in the UK. With 3 ties, the threshold drops to 46 days. Splitting the year 50/50 means roughly 182 days each side - well over both thresholds. Margaret is UK tax resident and taxable on her worldwide income, including any Spanish savings interest and Spanish rental from her flat.
To become non-UK resident, Margaret needs to either give up the UK cottage (drop the accommodation tie), or cut her UK days down to under 46. Many "half-year" retirees end up surprised by this - the rule of thumb that you become non-resident "if you spend more time abroad than in the UK" is wrong.
- 1 You spent 183+ days in the UK in the tax year→ Automatically UK resident under Step 2. Taxable on worldwide income, no SRT analysis needed.
- 2 You spent fewer than 16 days in the UK (and were UK-resident in any of the previous 3 years)→ Automatically non-UK resident under Step 1. Taxable in the UK only on UK-source income (rental, UK earnings, UK government pensions).
- 3 You spent 16-183 days in the UK and have multiple UK ties→ Use the sufficient ties test. Count your ties (family, home, work, 90-day, country) and look up the day threshold. More ties = fewer days needed to make you resident.
- 4 You moved abroad part-way through the tax year→ Check split-year treatment (8 cases in HMRC manual RDRM12000). If you qualify, the tax year is split: UK-resident portion + non-resident portion. Declared on the SA109 page of your Self Assessment.
- 5 You worked full-time abroad with limited UK visits→ Automatically non-UK resident under Step 1 if average 35 hours/week, fewer than 91 days in UK and fewer than 31 UK working days. Rarely applies to retirees.
If you move abroad mid-tax-year, split-year treatment lets you be treated as UK resident for the part of the year before you left and non-resident for the part after. Eight "cases" qualify, set out in HMRC's RDRM12000. For retirees the relevant ones are Case 3 (you cease to have any UK home) - you must dispose of or close down your UK home, spend no more than 15 days in the UK in the overseas part of the year, and within 6 months either be tax resident elsewhere, present in one foreign country for the whole 6-month period, or have your only home in one foreign country.
Worked example. John moves to Portugal on 1 September 2026, sells his UK house, and rents an apartment in Lisbon. His full new State Pension and a £25,000 drawdown come in over the tax year. Under Case 3 split-year treatment, the UK part runs 6 April to 31 August 2026 - five months. Roughly 5/12 of his State Pension (about £5,228) and any drawdown he took before 1 September stay UK-taxable. The remaining 7/12 of the State Pension (£7,319) and any drawdown after 1 September are treated as received while non-resident - taxable in Portugal under the new UK-Portugal treaty in force from December 2025. He files Self Assessment with SA109 (residence pages) for 2026/27.
Double-tax treaties - country-by-country for retirees
The UK has signed double-taxation conventions with more than 130 countries. Each treaty carves up the right to tax various income streams between the UK and the partner country. For UK retirees, the most important articles are:
- Article on pensions (usually Article 17 or 18): Almost always assigns primary taxing rights on private pensions and the State Pension to the country of residence - not the UK.
- Article on government service pensions (usually Article 18 or 19): Keeps these taxable only in the UK, regardless of where you live. Applies to former civil servants, NHS staff, armed forces, police and most local-authority pensions.
- Article on immovable property (usually Article 6): Allows the country where the property sits - the UK, for UK rental income - to tax that income. Your country of residence then taxes it too but gives credit for the UK tax paid.
| Country | State Pension | Private pension | UK rental | UK gov pension | Notes |
|---|---|---|---|---|---|
| Spain | Spain only | Spain only | UK (NRL scheme) - credit in Spain | UK only | New 2013 treaty in force. UK State Pension paid gross from UK. |
| Portugal | Portugal only | Portugal only | UK (NRL scheme) - credit in Portugal | UK only | New 2025 treaty in force from 29 December 2025. Replaced the 1968 convention. NHR scheme closed to new arrivals from 2024; IFICI regime for skilled workers only. |
| France | France only | France only | UK (NRL scheme) - credit in France | UK only | Pensions taxed in country of residence. Social charges (CSG/CRDS) capped for S1 holders. |
| Italy | Italy only | Italy only | UK (NRL scheme) - credit in Italy | UK only | Optional 7% flat tax on all foreign income for 10 years if you settle in a southern town under 20,000 people. |
| Cyprus | Cyprus only | Cyprus only (5% flat on first €3,420 free / over: 5% election) | UK (NRL scheme) - credit in Cyprus | UK only | Election: tax foreign pensions at 5% flat above €3,420 instead of progressive rates. |
| Ireland | Ireland only | Ireland only | UK (NRL scheme) - credit in Ireland | UK only | Common Travel Area - no visa or residence permit needed. |
| USA | US only | US only (Article 17 - exclusively in state of residence) | UK (NRL scheme) - credit in US | UK only (with US citizenship: US too) | Lump sums from UK pensions specifically taxed only in the UK (Article 17(2)). Important for the 25% PCLS. |
| Canada | Canada only (with up-to-25% UK withholding option) | Canada only | UK (NRL scheme) - credit in Canada | UK only | UK State Pension frozen at the rate you first claimed - no annual uprating. Major financial issue. |
| Australia | Australia only | Australia only | UK (NRL scheme) - credit in Australia | UK only | UK State Pension frozen on arrival - never uprated. UK pension transfers to QROPS heavily restricted. |
Two patterns stand out. First, the developed-world treaties (Spain, Portugal, France, Italy, Cyprus, Ireland, USA) all assign private and State Pension taxing rights to the country of residence. The UK steps aside. Second, Canada and Australia operate the frozen pension rule: your UK State Pension stops being uprated by the triple lock the moment you take up residence there, locking it at the rate you were first paid. For a 65-year-old moving to Sydney in 2026 with the full new State Pension of £12,547.60, that payment never goes up - by age 85 it could be worth roughly half of what it would have been had they retired in Spain. This applies to 16 countries in total, with Canada, Australia, New Zealand and South Africa the most populated by UK retirees.
Situation: Maria has the full new State Pension (£12,547.60) and lets her UK flat for £12,000/year gross. She moves to Marbella in April 2026 and becomes Spanish tax resident.
Under the UK-Spain treaty, Maria's State Pension is taxable only in Spain. Her UK rental is taxable in both - the UK first (where the property is), with Spain giving credit for the UK tax paid.
- UK State Pension: £12,547.60, paid gross by DWP. Declared on Maria's Spanish IRPF return (Modelo 100). UK does not tax it.
- UK rental £12,000: Under the NRL scheme, Maria files NRL1 so her letting agent pays her gross. She files UK Self Assessment with SA105 (property) and SA109 (residence) - Personal Allowance £12,570 covers the rent in full, so UK tax owed is £0.
- Spanish tax: Spain taxes worldwide income for tax residents. The State Pension (£12,547) plus the rental (£12,000) = roughly £24,500. Spanish IRPF on this stretches roughly 19-24%, with credit for any UK tax paid on the rental (£0 in Maria's case).
The mechanics: Maria first files form DT-Spain Individual with HMRC, accompanied by a Spanish tax-residence certificate from Agencia Tributaria. HMRC then issues her SIPP / DWP an "NT" tax code so they stop withholding. Without that step, UK PAYE would deduct tax that Maria would later have to claim back as a refund.
NHS access, the S1 form and the GHIC card
The NHS is a residence-based service, not a citizenship-based one. The day you stop being "ordinarily resident" in the UK, you lose the right to free NHS treatment for anything except A&E in England. Your replacement healthcare arrangement depends entirely on where you move and whether you receive a UK State Pension.
S1 form - UK pays for your local healthcare in the EEA
If you receive a UK State Pension and move to the EU, Iceland, Liechtenstein, Norway or Switzerland, you can apply for an S1 form from the NHS Business Services Authority (NHSBSA). The S1 says: the UK agrees to fund your healthcare, please give this person local state healthcare on the same terms as one of your citizens. You then register the S1 with the local health authority - CPAM in France, INSS or your regional servicio de salud in Spain, ASL in Italy. From that point you access the local system as a local resident: free GP, free hospital, prescription charges at local rates.
You can apply for an S1 up to 90 days before you move - see NHSBSA online portal. You don't qualify if you also receive a pension from the country you're moving to (that country becomes responsible). The S1 covers your dependants too. If you stop receiving your UK State Pension or move outside the EEA, the S1 ends.
GHIC card - temporary visits
The UK Global Health Insurance Card (GHIC) replaced the EHIC for new applications from January 2021 and gives you state-funded medical care during temporary visits to the EEA, Switzerland, Montenegro, Australia and several British Overseas Territories. It's free to apply at nhs.uk. Existing EHIC cards remain valid until they expire. The GHIC covers emergencies, ongoing treatment for pre-existing conditions, routine maternity care - at local public-sector rates. It is not a substitute for travel insurance: repatriation, mountain rescue and private-clinic treatment all need separate cover. It is also not a substitute for the S1 form if you live abroad permanently.
Outside the EEA - private insurance is essential
If you retire to the USA, Canada, Australia, New Zealand, the Caribbean, Thailand or anywhere else outside the EEA, neither the S1 nor the GHIC helps you. You need full private international health insurance, sized for your age and any pre-existing conditions. For an over-70 couple, annual premiums commonly run £5,000-£15,000/year and rise steeply with age. Pre-existing conditions are often excluded or premium-loaded. Some retirees join the country's public scheme as a voluntary contributor where that is allowed - Australia's Medicare is mostly closed to UK migrants, but New Zealand's public system covers permanent residents after two years.
If you move back to the UK, you regain NHS entitlement on the day you become "ordinarily resident" again - typically the day you re-establish a UK home with the intention of staying. There is no waiting period for ordinary NHS treatment. The NHS England Healthcare for UK Nationals Returning programme can help with reciprocal arrangements if you're moving back from a country with whom the UK has a healthcare agreement. Bring your European health records and any S1 paperwork - it simplifies the GP registration.
The Non-Resident Landlord Scheme - your UK home as a rental
One of the most common patterns: keep the UK house, let it out, use the rental to subsidise retirement abroad. UK rental income is taxable in the UK regardless of where the landlord lives - the property is here, so HMRC is too. The Non-Resident Landlord Scheme (NRL) is the mechanism. By default, your letting agent (or your tenant, if no agent) must deduct 20% basic-rate tax from your gross rent each quarter and pay it to HMRC. You then file a UK Self Assessment return claiming back any overpayment after expenses.
Most non-resident landlords file form NRL1 with HMRC. Once approved, you receive rent gross - no withholding - and instead pay the actual tax owed via Self Assessment after deducting allowable expenses: letting agent fees, repairs and maintenance, insurance, ground rent, accountancy fees, and (now in the form of a 20% tax credit only) mortgage interest. As a British citizen non-resident you also keep the £12,570 Personal Allowance, which on its own covers most retirees' UK rental income tax-free.
The £1,000 property allowance lets you receive up to £1,000 of gross rental income each year with no tax and no return required - useful only if your rental is genuinely tiny (a parking space, a single Airbnb week). Once your gross rent passes £1,000 you cannot use the allowance and the £12,570 Personal Allowance kicks in instead.
You file SA100 (main return), SA105 (UK property pages) and SA109 (residence pages) by 31 January each year online. Late filing penalties from HMRC start at £100 for one day late and escalate sharply. Many non-resident landlords find a UK-based accountant the cheapest option once they're abroad - the SA109 in particular has tripped up plenty of DIY filers.
Unlike rental income (where the Personal Allowance often wipes out the bill), capital gains on UK residential property are payable to HMRC by non-residents on the same basis as residents. Since 6 April 2020 you must report and pay within 60 days of completion using the UK Property Reporting Service. The annual CGT exempt amount is £3,000 for 2026/27. Residential property is taxed at 18% (basic-rate band) and 24% (higher-rate band). Your country of residence will usually also tax the gain but give credit for the UK CGT paid under the treaty.
Voluntary National Insurance - protecting your State Pension
You need 35 qualifying NI years for the full new State Pension (£12,547.60/year in 2026/27) and 10 years for any pension at all. Years spent abroad do not normally count unless you keep paying voluntary contributions. For most retirees this is the single highest-return decision of the whole move - roughly five years of voluntary NI typically pays back within three years of claiming the State Pension. If you're already at 35 years when you leave, you can skip this entirely.
Until 5 April 2026, expats with prior UK NI history could pay Class 2 at the bargain rate of about £3.50/week (£182/year). From 6 April 2026 onwards, that route closed - expats now pay Class 3 at £18.40/week (£956.80/year) for the 2026/27 tax year, and HMRC has tightened the eligibility to a minimum of 10 years' prior UK residence (up from 3). If you had a Class 2 application in by 5 April 2026, you may still be eligible under transitional rules.
Even at the new Class 3 rate, the maths still strongly favours paying. Each year of Class 3 adds roughly £6.32/week (£329/year) to your State Pension for life. Pay £956.80 for one year; get £329/year back from State Pension age - payback in under three years, then pure profit. Apply via form CA5403 (application from abroad). See our guide to how much State Pension you'll get for the full qualifying-years calculation.
Inheritance tax - the 6 April 2025 long-term residence rule
The UK's inheritance tax regime moved from a domicile basis to a long-term residence basis on 6 April 2025 - set out in GOV.UK guidance for long-term UK residents. You are a Long-Term Resident (LTR) for IHT purposes if you have been UK tax resident for at least 10 of the previous 20 tax years. As an LTR, IHT applies to your worldwide estate at up to 40% above the £325,000 nil-rate band (plus £175,000 residence nil-rate band on a home left to direct descendants).
When you leave the UK, the LTR status doesn't end immediately. There is a tail period of between 3 and 10 years (depending on how long you were resident) during which your worldwide estate stays in scope of UK IHT. For someone who has been UK resident for 20+ years, the tail is the full 10 years - you must be non-UK resident for 10 consecutive tax years before only UK-situs assets (UK property, UK shares) become the only thing UK IHT can touch.
This change was a major shift. The old "domicile of origin" rules let many people who moved abroad permanently shed UK IHT on non-UK assets after just a few years. Under the new LTR rules, that is no longer possible - the worldwide IHT exposure unwinds slowly. For estates above the £325,000 nil-rate band, this is the single biggest reason to take professional advice before moving.
What you need to sort before you go
- 1 Tell HMRC you are leaving→ File form P85 online (if not in Self Assessment) or declare the move on your next SA109 page. Includes date you left and your new address.
- 2 Tell DWP so your State Pension follows you→ Contact the International Pension Centre. If moving to the EEA, apply for the S1 form online through NHSBSA up to 90 days before you leave.
- 3 Sort UK rental property if applicable→ File NRL1 with HMRC so you receive rent gross. Notify letting agent. Register for Self Assessment if not already.
- 4 Get DT-Individual treaty relief in your new country→ Once tax-resident in your new country, get a tax-residence certificate from their tax authority and file DT-Individual (specific to your country) with HMRC. UK pension providers then issue NT code and pay you gross.
- 5 Decide on voluntary NI contributions→ Apply via CA5403 to keep building State Pension credits. Class 3 from April 2026 = £18.40/week. Almost always worth paying if you have fewer than 35 NI years.
Frequently asked questions
- Do I pay UK tax if I retire abroad?
- Sometimes yes, sometimes no. You stop being liable for UK tax on your worldwide income when you become non-UK resident under the Statutory Residence Test. But four streams of UK-source income remain UK-taxable regardless of where you live: UK rental income (through the Non-Resident Landlord Scheme), UK government service pensions (taxed only in the UK under most treaties), certain UK dividends, and any UK earnings such as a part-time UK job. Your State Pension and private pensions are usually taxable only in your country of residence under the relevant double-tax treaty, but you may need to file form DT-Individual to stop UK PAYE deducting tax at source. Capital gains tax on UK residential property always remains payable in the UK, even for non-residents.
- What is the Statutory Residence Test?
- The Statutory Residence Test (SRT), set out in HMRC's RDR3 guidance note, is the legal test that decides whether you are UK tax resident in any given tax year (6 April to 5 April). It works in three steps. First, the automatic overseas tests - if you spend fewer than 16 days in the UK (having been resident in the previous three years), or fewer than 46 days (having been non-resident in the previous three years), or you work full-time abroad with limited UK visits, you are automatically non-UK resident. Second, the automatic UK tests - if you spend 183+ days in the UK, or your only home is in the UK, you are automatically UK resident. Third, the sufficient ties test - if neither set of automatic tests applies, your residence depends on a sliding scale that combines days in the UK with five 'ties' (family, accommodation, work, 90-day, country). More ties means fewer days you can spend in the UK before becoming resident.
- Will I lose my UK Personal Allowance if I move abroad?
- Almost certainly not, if you are a British citizen. UK and EEA nationals keep the full £12,570 Personal Allowance as non-residents on UK-source income such as rental and UK pensions. Commonwealth citizens used to keep it automatically, but HMRC tightened the rules: a Commonwealth citizen who is non-resident now only gets the allowance if their country has a double-tax treaty with the UK that explicitly grants it. The list of countries that do - and that's most major Commonwealth countries - is in HMRC's R43 guidance. You claim the allowance by filing form R43 after each tax year, or it is given automatically through PAYE if your pension provider holds the right tax code (NT or your personal allowance code suffixed with the country).
- Do I still pay UK tax on my private pension if I retire overseas?
- Usually no, once the treaty machinery is in place. Under almost every UK double-tax treaty (Spain, Portugal, France, Italy, Cyprus, Ireland, USA, Canada, Australia included), private pensions and the State Pension are taxable only in your country of residence - not in the UK. But UK pension providers will deduct UK PAYE by default until they receive an HMRC instruction to stop. You unlock that by filing form DT-Individual (the form for your specific country, e.g. DT-Spain) accompanied by a certificate of tax residence from your new country's tax authority. HMRC then issues your provider an NT (No Tax) code and your pension is paid gross. Government service pensions (former civil servants, NHS, armed forces, police) are the main exception - these almost always remain taxable only in the UK under treaty 'government service' articles.
- Can I keep using the NHS if I move abroad?
- Not as a routine source of healthcare, no. The NHS is residence-based, not citizenship-based - once you are no longer 'ordinarily resident' in the UK, you lose entitlement to free NHS treatment for anything except A&E in England. If you move to the EU, Iceland, Liechtenstein, Norway or Switzerland and receive a UK State Pension, you qualify for an S1 form. The UK then pays your country of residence to provide you with state healthcare on the same terms as a local citizen. If you move outside the EEA, you need full private health insurance - annual cover for an over-70 couple in Spain costs roughly £3,000-£5,000 at first, rising sharply with age. If you return to the UK to live, you regain NHS entitlement on the day you become ordinarily resident again - typically the day you re-establish a UK home and intend to stay.
- What is the difference between GHIC and EHIC?
- The GHIC (UK Global Health Insurance Card) replaced the EHIC (European Health Insurance Card) for new applications from January 2021. Both cards give a UK resident free or reduced-cost state healthcare during temporary visits to the EEA and Switzerland - emergencies, ongoing treatment for pre-existing conditions, routine maternity care. Existing EHIC cards are valid until they expire. The GHIC has slightly wider coverage than the EHIC, adding Montenegro, Australia and several British Overseas Territories. Neither card replaces travel insurance: they don't cover repatriation, mountain rescue, or private-clinic treatment. And neither card helps you if you have moved abroad permanently - for that you need the S1 form if you're a state pensioner in the EEA, or private health insurance everywhere else.
- Do I have to tell HMRC I am leaving the UK?
- Yes - file form P85 if you are leaving and not planning to file a Self Assessment return, or notify your residence change on your next Self Assessment return using the SA109 supplementary page. The P85 sits at gov.uk/tax-right-leaving-uk; you can submit it online with your Government Gateway account. You also notify DWP separately so the State Pension department knows where to pay you, and your pension provider(s) so they can apply for an NT tax code once you have your country's tax residence certificate. If you own UK property and let it out, file an NRL1 within months of becoming non-resident or your letting agent must start deducting 20% withholding tax.
- What is split-year treatment?
- Split-year treatment lets you be treated as UK resident for the part of the tax year before you left and non-resident for the part after, even though the SRT normally decides residence on a whole-tax-year basis. Eight different 'cases' allow you to qualify, set out in HMRC manual RDRM12000. The two most common cases for retirees are Case 1 (you start full-time work abroad), and Case 3 (you cease to have any UK home - you sell or close down your UK home for at least the rest of the tax year and spend no more than 15 days in the UK after). Split-year treatment is automatic where you qualify - you don't claim it; you declare it on your Self Assessment return on the SA109 page. The upshot: pension and other income received before the split date stays fully UK-taxable; income received after the split date is treated as if you were non-resident.
- Will I still pay inheritance tax if I live abroad?
- From 6 April 2025, the UK's inheritance tax (IHT) regime moved from a domicile basis to a long-term residence basis. If you have been UK tax resident for at least 10 of the previous 20 tax years, you are a Long-Term Resident (LTR) and IHT applies to your worldwide estate at up to 40% above the £325,000 nil-rate band (plus £175,000 residence nil-rate band if leaving a home to direct descendants). After you leave the UK, you stay an LTR for between 3 and 10 years depending on how long you were resident - a 'tail' period during which your worldwide estate remains in scope. Once the tail expires, only UK-situs assets (UK property, UK shares) are subject to UK IHT. This change was a major shift for British retirees moving abroad - the old 'domicile of origin' rules that let you escape worldwide IHT after a few years away no longer apply.
- Can I rent out my UK home from abroad and not pay UK tax?
- No - UK rental income is always UK-taxable regardless of where the landlord lives. The Non-Resident Landlord Scheme (NRL) is the framework. By default, your letting agent (or tenant, if you have no agent) must deduct 20% basic-rate tax from your gross rent and pay it to HMRC quarterly. To stop the withholding and pay your actual tax bill via Self Assessment, file form NRL1 with HMRC. NRL1 approval lets you receive rent gross and claim allowable expenses - mortgage interest (now via the 20% tax credit only), letting agent fees, repairs, insurance, ground rent. You still need to file a UK Self Assessment return each year using the SA105 (UK property) and SA109 (residence) supplementary pages. Your country of residence will also tax the rental income but should give credit for the UK tax already paid under the relevant treaty.
This page is general guidance for the 2026/27 UK tax year, current as of 16 May 2026. It is not regulated tax advice. Cross-border tax mistakes are expensive and time-consuming to fix. Before you move, take advice from a regulated UK tax adviser (Chartered Institute of Taxation member) and an adviser qualified in your destination country. Treaty positions change - the new UK-Portugal treaty in force from 29 December 2025 is a reminder that what was true for an earlier mover may not be true for you.