Split Year Treatment
Moving to or from the UK part-way through the tax year can make things complicated. Split Year Treatment is a helpful rule that lets you divide the tax year into a 'UK part' and an 'overseas part' so you only pay UK tax on your foreign income for the time you were here.Normally, if you're a UK resident, you're taxed on your worldwide income for the entire tax year. But if you qualify for Split Year Treatment, the tax year is split in two — which can save you a lot of money.
How Does It Work?
You get Split Year Treatment if your circumstances change significantly during the tax year. This usually happens if you:
- Start working full-time abroad
- Move abroad with a partner who works full-time abroad
- Cease to have a home in the UK
- Come to the UK to start working full-time
- Come to the UK and start having a home here
Splitting the Year
If you qualify, you only pay UK tax on foreign income for the portion of the year you're considered a UK resident.
For the overseas part of the year, you're generally only liable for UK tax on income from UK sources.
How to Claim It
You claim Split Year Treatment on your Self Assessment tax return, specifically on the SA109 ‘Residence, remittance basis, etc’ supplementary page.
When using Taxd, our platform asks you a few simple questions to check if you qualify.
If you do, we’ll help you complete the form correctly so you only pay the tax you owe.