You may still be considered a UK resident for tax purposes even while living abroad, depending on the Statutory Residence Test (SRT). Generally, you remain a resident if you spend 183 or more days in the UK, have a home in the UK, or maintain strong ties (work, family, accommodation). Tax residency is determined annually (6 April to 5 April).
Generally, if you live abroad for more than two consecutive years, you may lose your ILR status. Because you are going to live abroad in the EU and visit the UK only 2-3 times a year, it is possible that your ILR may be revoked due to a long period of absence.
Overseas tests
You're usually non-resident if either: you spent fewer than 16 days in the UK (or 46 days if you have not been a UK resident for the 3 previous tax years) you worked abroad full-time (averaging at least 35 hours a week), and spent fewer than 91 days in the UK, of which no more than 30 were spent working.
In most normal circumstances you will not lose your British citizenship if living abroad unless you opt to renounce your status as a British citizen or it is revoked in certain exceptional circumstances. If you have any questions about British Citizenship, our experienced immigration lawyers can help you.
If you have been granted Settled Status (also referred to as Indefinite Leave to Remain), you can spend up to five years in a row outside the UK without losing your status unless you are a Swiss citizen or the family member of a Swiss citizen.
You might not be able to get settled status if you spent more than 6 months outside the UK within any 12-month period. There are some exceptions to this. You might still be able to get settled status if you were outside the UK for up to 12 months for: an 'important reason' - for example, pregnancy or study.
Family visas
If you're in the UK on a family visa, you need to live in the UK for 5 years to apply for indefinite leave to remain. We don't expect this to change to 10 years after the rules change. You can check the rules for applying for indefinite leave to remain.
Going abroad temporarily
Tell the office that pays your benefit if you plan to go abroad for more than 4 weeks. You can claim the following benefits if you're going abroad for up to 13 weeks (or 26 weeks if it's for medical treatment): Attendance Allowance. Disability Living Allowance ( DLA ) for adults.
Will I be allowed to move back to the UK? If you're a British national, you'll be able to return to the UK to live, but it could take a few months to re-establish your rights to services such as benefits and housing. It's best that you have a plan to support yourself during this time.
In the UK, your tax residency status will depend on a statutory residence test. You'll usually be regarded as a UK resident if: You spend more than 183 days in the UK within a tax year. Your only home was in the UK for 91 days or more, and you stayed in this home for more than 30 days.
You will be automatically non-UK resident if you leave the UK to work full-time overseas. If this doesn't apply to you, you'll be treated as automatically non-UK resident in a tax year if you limit the number of days you spend in the UK during that year.
However, residency does not affect your UK citizenship.
Losing your UK domicile
Upon returning to the UK, it's essential to update your tax status with HMRC to reflect any changes in your tax obligations, especially if you have income from foreign sources.
The Home Secretary has the power to take away a person's British citizenship if they consider it conducive to the public good, or if the person obtained their citizenship by fraud. The power of citizenship deprivation is in section 40 of the British Nationality Act 1981.
Your indefinite leave will lapse if you stay outside the UK for 2 or more years (5 or more, if granted settled status under the EU Settlement Scheme) at a time.
You may 'break' continuous residence in a number of ways, including: If you are away from the UK for longer than 6 months at a time. If you are away from the UK for a total of 550 days during the 20 year period. If you are removed, deported or have left the UK during the 20 year period.
You may have to pay tax on certain income or gains made while you were non-resident. This doesn't include wages or other employment income. These rules (called 'temporary non-residence') apply if both: you return to the UK within 5 years of moving abroad (or 5 full tax years if you left the UK before 6 April 2013)
If you stay outside the UK for longer than this you lose your 'right to return' - this means you lose your settled status or your indefinite leave to remain. If you get British citizenship, you can leave the UK for as long as you want without losing your right to return.
Your UK citizenship will not be affected if you move or retire abroad. If you want to live in an EU country, check the country's living in guide for information about your rights. You may need a visa.
Personal and workplace pensions
If you're in a personal or workplace pension scheme, moving abroad shouldn't have any effect: your pension should continue to be paid in full. you're normally entitled to any rises regardless of where you live in the world.
Consider the destinations below when looking for the best countries to retire to from the UK.
The 7 year rule
No tax is due on any gifts you give if you live for 7 years after giving them - unless the gift is part of a trust. This is known as the 7 year rule.
You only need to provide one piece of evidence to cover each month or longer period of time. Use documents that cover longer periods of time if you can, such as annual bank statements, council tax bills or university letters and certificates.
An exit tax would be a tax on unrealised gains which accrued when UK resident when the individual become non-resident. It is reported that this was being considered at 20% on business assets such as shares in private companies.