Leaving the UK ― UK source income

Produced by Tolley

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Leaving the UK ― UK source income
  • Personal allowances in the year of departure
  • Split year treatment (2013/14 onwards)
  • UK income arising after departure ― split year treatment applies (2013/14 onwards)
  • Employment income
  • Trading income
  • Partnership income
  • Savings and investment income
  • No split year treatment available
  • Income arising in subsequent tax years
  • More...

This guidance note covers the tax position for those who leave the country but who have UK source income in the year of their departure or subsequently. It does not cover capital gains. For this, see the UK capital gains tax liability of temporary non-residents guidance note.

For the UK tax treatment of foreign income in the year of departure from the UK and subsequently, see the Application of split year treatment to component income and gains (2013/14 onwards) guidance note.

You may also find the Residence ― issues on leaving the UK (2013/14 onwards) and Reporting requirements on leaving the UK guidance notes useful.

Personal allowances in the year of departure

Personal allowances are available in full for the year of departure as long as:

  1. the individual’s adjusted net income is less than £100,000

  2. the individual has not made a claim for the remittance basis, and

  3. he falls into one of the following categories:

    1. an EEA national

    2. a resident in the Isle of Man or Channel Islands

    3. was previously resident in the UK and is now resident abroad for health reasons

    4. is currently or was previously employed in service of the Crown (or is the widow / widower of such a person)

    5. is employed in the service of any territory under Her Majesty’s protection

    6. is employed in the service of a missionary society

ITA 2007, ss 35, 56

Note that this list does not include Commonwealth citizens, whose statutory entitlement to personal allowances was removed from 6 April 2010. However, they and others may be entitled to personal allowances under the terms of the relevant double tax treaty. Current treaties can be found on the GOV.UK website. See the Personal allowance guidance note for more on how to claim personal allowances under a treaty.

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