Moving Back to the UK

Q. When do I become UK tax resident again after moving back from the USA?

The UK uses the Statutory Residence Test. You are automatically UK resident for a tax year if, for example, you spend 183 days or more in the UK, your only home is in the UK for at least 91 days in a row, or you work full-time in the UK over a 365-day period. In the year you arrive, split-year treatment can divide the year into a non-resident part and a resident part, but only in set situations, such as starting to have your only home in the UK or starting full-time work here, and not if you were abroad for less than a full tax year.

Seek professional advice on anything like this. The Directory lists specialists.

Q. What is the four-year foreign income and gains regime, and can returning Brits use it?

Since 6 April 2025, people in their first four years of UK residence after at least 10 consecutive tax years of non-UK residence can claim not to pay UK tax on foreign income and gains, even if they bring them into the UK. The test is based on residence, not nationality, so a Brit returning after 10 or more years abroad can fall within it. It is claimed year by year on your Self Assessment return, and a claim has a cost: in that year you lose your Personal Allowance and the Capital Gains Tax annual exempt amount.

Seek professional advice on anything like this. The Directory lists specialists.

Q. What happens to my 401(k) and IRA if I move back to the UK?

The UK-US tax treaty covers US plans such as 401(a) workplace plans (which include 401(k)s), IRAs and Roth IRAs. In general, growth inside the account is not taxed in the UK until money is paid out, and regular pension payments to a UK resident are taxed in the UK. A payment that would be tax-free in the US for a US resident, such as a qualifying Roth IRA withdrawal, is also exempt in the UK, and lump sums are generally taxable only in the country where the plan is set up. This is one of the most technical areas of moving back, and some points, such as paying into a Roth after you become UK resident, are not covered by official guidance at all.

Seek professional advice on anything like this. The Directory lists specialists.

Q. Do I still have to file US taxes after moving back to the UK?

If you are a US citizen, yes: the US taxes its citizens on worldwide income wherever they live, so US returns carry on. If you hold a green card, you record giving it up with USCIS Form I-407. Giving up a green card held in at least 8 of the last 15 tax years can bring you within the US expatriation tax rules, which depend on your net worth, your recent US tax and whether your last five years of US filings are in order, and everyone leaving this way files IRS Form 8854.

Seek professional advice on anything like this. The Directory lists specialists.

Q. Will I still get US Social Security if I live in the UK?

US Social Security payments continue for people who live in the UK, which has a social security agreement with the US. The agreement can also help people qualify for benefits by combining work records from both countries. Under the tax treaty, US Social Security paid to a UK resident is taxed in the UK, not the US.

Seek professional advice on anything like this. The Directory lists specialists.

Q. Do I start paying National Insurance again when I move back?

Yes, once you work in the UK, under the normal rules. Employees pay Class 1 National Insurance on earnings above £242 a week in 2026-27, and self-employed people pay Class 4 on profits above £12,570. Years abroad can leave gaps in your record, and the Check your National Insurance record service shows any gaps, whether you can fill them with voluntary contributions, and how that would change your State Pension forecast. You need at least 10 qualifying years for any new State Pension.

Q. When can I use the NHS again after moving back to the UK?

British citizens returning to live in the UK for good will most likely count as ordinarily resident, and so entitled to free NHS hospital care, from the day they arrive. The test is about living here on a settled basis, not how long you have been back. You can register with a GP straight away: you do not need ID, proof of address or proof of immigration status, and you can do it online. These are the rules for England. Scotland, Wales and Northern Ireland have their own.

Q. Will my children get home fees at a UK university if we move back?

This catches many returning families out. To pay home fees in England, a student normally needs to have been ordinarily resident in the UK and Islands for the full three years before the course starts. Time away can be ignored if it was a temporary absence, or if you were abroad only because you or a family member were working abroad temporarily. There is no fixed definition of "temporary", and the longer the time abroad, the harder it is to show, so families who moved to the US for good may not qualify straight away. Scotland and Wales use similar three-year tests.

Timing a move around a child's university start date can make a large difference to fees, so it is worth checking early.

Q. Can I swap my US driving licence for a UK one?

Usually not. The US is not on the list of countries whose licences can be exchanged for a GB licence. Once you are resident, you can drive on your US licence for up to 12 months, and after that you need a provisional licence and must pass the UK theory and practical tests. The exception: if you originally passed your test in Great Britain or Northern Ireland and your licence was issued on or after 1 January 1976, you can exchange it free of charge using a D1 form from a Post Office that offers DVLA services.

Q. How do I ship my belongings back to the UK without paying duty?

Transfer of Residence relief lets you bring your belongings back free of import duty and VAT if you have lived outside the UK for at least 12 consecutive months, have owned and used the goods for at least 6 months, and bring them in within 12 months of moving back. You apply to HMRC with form ToR1 before you move or before the goods are shipped. Relieved goods cannot be sold, lent or hired out for 12 months, alcohol and tobacco are excluded, and vehicles also need a NOVA notification.

Q. How do I bring my dog or cat back to Britain from the USA?

• Microchip first, or at the same appointment as the rabies vaccination.
• Rabies vaccination at 12 weeks old or older, then wait at least 21 full days before travelling. The US is a listed country, so no blood test is needed.
• Great Britain pet health certificate, signed by an official vet. Your pet must arrive within 10 days of it being issued.
• Tapeworm treatment for dogs, between 1 and 5 days before arrival.
• An approved route and carrier. Most pets fly as cargo.

Q. What else should I sort out when I move back to the UK?

• Register to vote at your new address. It only takes a few minutes, and being on the electoral roll also helps your UK credit file.
• Your credit history. Your US credit score will not follow you, so expect a thin UK file at first. UK credit files are kept by Equifax, Experian and TransUnion.
• Child Benefit. There is no longer a waiting period for families moving to the UK, and claims can be backdated up to 3 months.
• Council Tax. Adults usually pay it to the council where they live, with 25% off if you live alone.