The UK Rules
'Follow the Regulations'
Foreign Income

Rules for Tax on Foreign Income

Information in this section explains UK taxation on money earned abroad. Check whether you need to pay tax on foreign income and investments.

FOREIGN INCOME: The liabilities for UK Income Tax on revenue made overseas can also include things like:

For taxation purposes, tax on foreign income refers to anything outside England, Scotland, Wales, and Northern Ireland. The Channel Islands and the Isle of Man also get classed as foreign.

Do You Need to Pay Tax on Foreign Income

As a rule, it is your 'residence status' that determines whether you need to pay taxes or not. You will need to work out whether you get classed as 'resident' in the United Kingdom.

What if you are not classed as United Kingdom resident? In this case, you will not be liable for paying UK tax on foreign income and investments.

But, as a rule getting classed as UK resident means you will pay tax on income earned abroad. There are some exceptions to this rule. They will apply if your 'domicile' (permanent home) is outside of the United Kingdom.

How to Report Foreign Income

In most cases, those who need to pay tax will report their foreign income using a Self Assessment tax return. But, some sources of foreign income gets taxed 'differently'.

Income Taxed in more than one Country

There may be circumstances where you get taxed in the United Kingdom and in another country. In cases such as these, there are ways to claim tax relief if you get taxed twice.

Note: What if you have not yet paid any taxes on your foreign income? You will need to prove your eligibility to get the reliefs. Thus, you (or your agent) should apply for a 'certificate of residence in the UK' for tax purposes.

Also in this section...

Residence Status and Tax: How your status as a resident affects your liabilities for UK taxation.
Non-domiciled Resident: Check the tax rules for a UK resident with a 'domicile' outside the UK.
Paying Tax on Foreign Income: Payment rules for a UK resident with foreign income or capital gains.
Taxed Twice: How the double-taxation agreement affects the tax you pay in the UK and abroad.
Foreign Students: The rules for paying tax on foreign income while studying in the United Kingdom.

Rules for Paying Tax on Foreign Income Gained Outside the United Kingdom