Split-Year Treatment: What It Means and How to Claim It

Introduction

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If you're moving into the UK or leaving the UK during a tax year, you may not be considered a UK tax resident for the entire period. That’s where Split-Year Treatment comes into play.


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Understanding this rule can save you from paying unnecessary tax on foreign income during the part of the year you were non-resident. Here's what it means, how it works, and how to claim it—especially in inbound (moving to the UK) and outbound (leaving the UK) cases.

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✅ What Is Split-Year Treatment?

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Split-Year Treatment allows your UK tax residency status to be split within a single tax year—meaning you are treated as UK resident only for part of the year.


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Without split-year treatment, if you’re UK resident under the Statutory Residence Test (SRT), you’re taxed on your worldwide income for the full tax year, regardless of when you arrived or left.


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Split-Year treatment ensures that:


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• You stop being taxed as a UK resident from the point you leave, in an outbound case.
• You are taxed as a UK resident only from the point you arrive, in an inbound case.

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🔄 Outbound Cases: Leaving the UK

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There are three outbound split-year cases where you may qualify:


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Case 1: Starting Full-Time Work Abroad - if you leave the UK to work full time overseas and minimise physical and working presence in the UK. Note you can work for a UK employer and be considered in full time work abroad.


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Case 2: Partner Starts Working Abroad - if your spouse or civil partner moves abroad for full-time work and you move overseas with them.


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Case 3: Ceasing to Have a UK Home - you no longer have a UK home and acquire a sufficient link with a country overseas within a six month period.

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🔄 Inbound Cases: Arriving in the UK

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There are five inbound split-year cases, typically involving a permanent move to the UK:

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Case 4: Acquiring a UK Home - if you acquire a family home in the UK (owned, rental or room with exclusive use) and reside in the home until at least the end of the tax year.

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Case 5: Starting to Work Full-Time in the UK - if you commence full time work in the UK and exercising most of your work duties in the UK. Note you can work for a foreign employer and be considered in full time with in the UK.

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Case 6: Returning to the UK after Working Abroad- if you repatriate to the UK following a period of full time work overseas.

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Case 7: Partner returns to the UK after Working Abroad- if you repatriate to the UK with your partner following a period of full time work overseas.

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Case 8: Acquiring a UK Home whilst maintaining access to an overseas home - if you acquire a family home in the UK (owned, rental or room with exclusive use) and reside in the home until at least the end of the second tax year of relocation.

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📝 How to Claim Split-Year Treatment

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You cannot claim split-year treatment automatically—it must be done when submitting your Self Assessment tax return for the relevant year.

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1. Register for Self Assessment
2. Complete the SA109 "Residence, Remittance Basis etc." supplementary pages.
3. Indicate which split-year case you’re claiming.
4. Provide accurate dates of arrival or departure.


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If you're unsure about the applicable case or residency status, it’s best to consult a UK tax adviser.

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🎯 Need Help With Split-Year Treatment?

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At Global Tax Consulting, we specialise in helping expats and digital nomads understand and manage their UK tax residency. Whether you're moving abroad or arriving in the UK, we can guide you through the Statutory Residence Test, determine your eligibility for split-year treatment, and handle your Self Assessment filing.