So, you’re leaving the UK.

Maybe it’s for warmer skies. Maybe for love. Maybe you’ve simply had enough of winters defined by drizzle, delayed trains, and radiators that never quite do their job. Whatever your reason, you’re preparing to step away from the island and into somewhere new.

But leaving the UK isn’t just a change of postcode or passport stamps. It’s a financial and legal shift—one that comes with fine print. Taxes, pensions, property, HMRC paperwork, inheritance rules—these threads don’t loosen themselves. If you don’t untie them properly before you go, they will follow you quietly, persistently, and often expensively.

From 6 April 2025, the rules changed for good. The old ideas of domicile and non-dom status—that fog of historic tax law—have been dismantled. What matters now is residency. Where you live. Where you work. Where you spend your days and nights. Get this wrong, and HMRC won’t care how poetic your reasons were for leaving.

If you’re planning to leave the UK in 2026 or beyond, here are the key things to put in order:

1. Take Stock of What You Own (and Owe)

Start with clarity.

List everything: assets, liabilities, income streams, insurance, investments, pensions, property. Once you’re non-resident, the NHS is no longer your quiet safety net. Health insurance, life cover, income protection—these need to move with you, like your passport.

Leaving without a clear financial inventory is how gaps appear. And gaps, in tax, are rarely forgiven.

2. Your Money May Stay British (Even If You Don’t)

Some things remain behind.

Your ISAs can stay open, but they freeze. Once you become non-UK resident, you can’t contribute any further—though the funds can remain invested.

Your UK pension, however, is different. If you still have UK earnings, you may be able to continue contributing. Check your National Insurance record too. Voluntary NI contributions can be the quiet difference between long-term comfort and later regret.

This is one area where planning early pays dividends decades later.

3. Tell HMRC You’re Leaving (Don’t Disappear Quietly)

Before you go, inform HMRC.

• File Form P85, or
• Declare your departure via Self Assessment

You’ll need to confirm:

• Your departure date
• Your future country of residence
• Any UK income that will continue (rent, dividends, pensions)

HMRC will apply the Statutory Residence Test (SRT) to determine whether you’ve truly left. As a rule of thumb:

• Keep UK visits below 90 days per tax year
• If working full-time abroad, limit UK workdays to under 30

Yes. Days are counted. Precisely.

4. The Five-Year Rule: Capital Gains Can Follow You Back

Here’s where many people slip.

If you sell certain assets while non-resident and return to the UK within five tax years, HMRC can resurrect those gains and tax them on your return.

Stay away for five years plus one day, and the charge usually disappears.

Timing matters. Exits and returns should never be accidental.

5. Inheritance Tax After 2025: Residency Rewrites the Rules

From April 2025, Inheritance Tax (IHT) is no longer about where you’re “from”—it’s about where you’ve been.

If you’ve been UK-resident for 10 of the last 20 tax years, your worldwide estate may remain within scope of UK IHT—even after you leave. And that exposure can last for up to 10 years post-departure.

This is the moment to review:

• Wills
• Trusts
• Life insurance policies
• Estate planning structures

In tax, as in life, the past lingers longer than expected.

6. Keeping a UK Home? You’re a Non-Resident Landlord

If you rent out UK property after leaving, you fall under the Non-Resident Landlord (NRL) Scheme.

Unless you file Form NRL1, your letting agent—or even your tenant—must withhold 20% tax at source before paying you rent.

If there’s a chance you’ll return one day, keep meticulous records. You may later qualify for Private Residence Relief, a small but valuable mercy for those who come home.

7. Life, Rewired

Some practicalities matter more than you expect:

• Tell your bank you’re leaving (they dislike surprises)
• Open a multi-currency account—money, like people, dislikes borders
• Rework your budget for a new country, new costs, new habits
• Keep professional memberships active; they’re bridges back, not baggage

And if you can, take cultural training seriously. It’s not corporate fluff—it’s about learning when to listen, when to speak, and how not to stand out for the wrong reasons.

Leaving the UK Is a Metamorphosis, Not a Move

The end of domicile rules means one thing is clear: residency now defines your financial reality.

Leaving well requires planning. Advice. Timing. Clean exits. Done properly, you step off lightly—free from invisible obligations that would otherwise trail behind you for years.

If you’re planning to leave the UK in 2026 or beyond and want to ensure your tax, residency, and cross-border affairs are structured correctly, Elixir Tax specialises in UK expatriate and international tax planning.

Before you go, make sure you’ve truly gone on paper as well as in spirit.

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