How does the UK Statutory Residence Test work?

The SRT has three tests applied in order. Automatic non-residence: fewer than 16 days in the UK (46 days if not resident in previous 3 years). Automatic residence: 183+ days in the UK. Sufficient ties test: with 4 UK ties, just 31 days triggers residency. Source: HMRC RDR3.

Do non-UK residents pay CGT on cryptocurrency?

Under current HMRC guidance, non-UK residents are not subject to UK CGT on most assets including cryptocurrency. Only UK land and property disposals are subject to Non-Resident CGT. Cryptocurrency is not treated as UK-situated property. Verify with a qualified adviser — this is an evolving area.

Is UK rental income taxable if you live abroad?

Yes. UK rental income is taxable in the UK regardless of where you live. Non-resident landlords must report rental income via Self Assessment. The Non-Resident Landlord Scheme may apply — agents or tenants may withhold 20% unless you apply to HMRC to receive rent gross. Source: GOV.UK

Is self-employment income taxable in the UK if you work abroad?

No. If you are non-UK resident under the SRT and your self-employment work is done entirely outside the UK, that income is not UK-source and is not subject to UK income tax. Only work physically performed in the UK would be taxable.

UK Expat Tax Guide 2026 — Statutory Residence Test

The Statutory Residence Test — three sequential tests

Work through these in order. Stop when you have a definitive answer. Do not skip to test 3.

Test 1 — Automatic non-residence

You are automatically non-resident if you spend fewer than 16 days in the UK in the tax year. If you were not UK resident in any of the previous 3 tax years, this threshold rises to 46 days. If this applies — stop here, you are non-resident for that year.

Test 2 — Automatic UK residence

You are automatically UK resident if you spend 183 or more days in the UK, your only home is in the UK, or you work full-time in the UK for 365+ days with no significant break.

Test 3 — Sufficient ties (the one most people don't know)

If neither automatic test applies, HMRC counts your UK ties: family in the UK, a UK home, substantive UK work, 90+ days in the UK in either of the previous 2 years. The more ties you have, the fewer days you can spend in the UK. With 4 ties, you become UK resident with just 31 days in the UK in a tax year.

What counts as a "day" in the UK?

A day is counted if you are present in the UK at midnight. Arriving and leaving on the same day generally does not count. Transit through a UK airport does not count if you do not pass through border control. Up to 60 days can be disregarded due to "exceptional circumstances" beyond your control (illness, natural disaster, national emergency).

Split year treatment

In the year you leave or return to the UK, "split year" rules may apply — meaning you're only taxed as a UK resident for part of the year. There are 8 different cases. This is where professional advice is most valuable. Getting the split year position wrong in either direction is expensive.

What's taxable in the UK when you're non-resident

Source: GOV.UK — Tax on foreign income

Income type	UK taxable?	Notes
UK rental income	Yes	Taxable regardless of residence. Report via Self Assessment. Non-Resident Landlord Scheme applies.
UK pension income	Usually	Generally taxable in the UK. Double tax treaties with your country of residence may affect this — verify treaty position.
UK employment income (work done in UK)	Yes	Income from work physically performed in the UK is UK-source and taxable regardless of residency status.
UK property capital gains	Yes	Non-Resident CGT applies to UK residential and commercial property disposals. Must be reported to HMRC within 60 days of completion.
Self-employment income (work outside UK)	No	Not UK-source income. Not subject to UK income tax as a non-resident if work is done entirely outside the UK.
Capital gains on investments / crypto	No*	Non-residents not subject to UK CGT on most assets including cryptocurrency under current rules. *Evolving area — verify.
Foreign employment / business income	No	Foreign income not UK-source. Not taxable in the UK for non-residents.

🇬🇧 UK Expat Tax Guide 2026

The Statutory Residence Test — three sequential tests

What counts as a "day" in the UK?

Split year treatment

What's taxable in the UK when you're non-resident

When you need professional advice

Related tax guides

The Expat Briefing