26/08/2026
Coming home to retire? Tax implications for returning expats. 🏠
If you live abroad, there may be many appealing reasons to return to the UK for your later years. But the emotional pull – such as wanting to be closer to family or return to a familiar place – should be balanced against the costs of returning home. Things to bear in mind;
• The tax treatment of your income and gains depends on how long you lived overseas.
• Qualifying UK residents receive four years of tax relief on certain worldwide income and gains, under the foreign income and gains regime.
• The complex and changing tax landscape highlights the value of professional advice for
anyone considering returning to the UK. 🌎
If you are considering moving back to the UK, considering a number of different aspects and how they compare in different countries could help clarify your decision. These include:
✔Quality of healthcare system
✔Political stability of both countries
✔Cost of living and housing affordability
✔Your lifestyle preferences (for instance, weather, hobbies, community)
✔ Any changes in UK allowances after living abroad
✔The tax regimes
Also, and most importantly think about timing. ⏰
The FIG regime applies if you become a UK tax resident after 10 consecutive years of nonresidence.
For your first four years back in the UK, you are exempt from UK tax on certain
foreign income and gains.
If you return after fewer than 10 years abroad, you do not qualify for FIG relief and are taxed on all income and gains as soon as you become a UK resident.
Returning to the UK within five years may also trigger a tax bill on certain foreign income or gains, depending on your circumstances and the detailed rules set by HMRC.
Professional financial and tax advice can ensure you make the most of your allowances and avoid unexpected tax bills once you are back in the UK.
Tax treatment depends on individual circumstances and may change.
Mark Nield is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority).
SJP approved 11/08/2026
