UK Split-Year Treatment Explained | How to Claim

Introduction

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When relocating to or from the UK mid-tax year, your UK tax residency may not apply for the full year. UK split-year treatment ensures you are taxed as a resident only for the relevant portion of the year, preventing unnecessary taxation on foreign income.

Properly applying split-year treatment can reduce tax liabilities for expatriates and returning residents. This guide explains eligibility, inbound and outbound cases, and the step-by-step process to claim split-year treatment under HMRC rules.

What Is Split-Year Treatment?

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UK split-year treatment divides your tax year residency, so you are taxed as a UK resident only for the period you are actually resident. This prevents full-year taxation on overseas income during non-resident periods.

If split-year treatment is not applied, HMRC treats you as fully UK resident under the Statutory Residence Test (SRT), making your worldwide income liable to UK tax for the entire year, even for periods spent abroad.

With split-year treatment, outbound movers cease UK residency taxation upon departure, while inbound arrivals are taxed only from the date they establish UK residency.

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Outbound Cases: Leaving the UK

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You may qualify for outbound split-year treatment in these scenarios:

Starting Full-Time Work Abroad: Leaving the UK to work overseas full-time, while minimising UK presence. UK employers can still qualify if you’re officially based abroad.

Partner Starts Working Abroad: Accompanying your spouse or civil partner who is employed full-time abroad.

Ceasing to Have a UK Home: You no longer maintain a UK home and establish sufficient overseas links within six months.

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Inbound cases usually involve permanent relocation:

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

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Acquiring a UK Home: Establish a family home in the UK and reside there until the tax year end.

Starting Full-Time Work in the UK: Begin UK-based full-time employment, including for foreign employers.

Returning After Work Abroad: Repatriate to the UK following overseas employment.

Partner Returns with You: Accompany your partner after their overseas assignment.

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How to Claim Split-Year Treatment

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Split-year treatment is not automatic. Claim it through your UK Self Assessment tax return using the SA109 “Residence, Remittance Basis etc.” supplementary pages. Key steps:

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Register for Self Assessment.

Complete the SA109 form and indicate your split-year case.

Provide accurate dates of arrival or departure.

Consult a UK tax adviser if unsure about your case or residency status.

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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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Global Tax Consulting assists UK expats, non-doms, and digital nomads in understanding the Statutory Residence Test and claiming split-year treatment. Our services include:

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Assessing eligibility under inbound or outbound cases

Preparing Self Assessment forms, including SA109

Advising on compliance with HMRC rules

Reducing tax exposure for part-year residency

Learn more about our UK expat tax planning services and ensure your split-year claim is accurate and compliant.