HMRC contacts returning expats over temporary non-residency tax rules

HMRC has begun contacting taxpayers who left the UK for a limited period before returning, reminding them to review their historic tax filings.

Under UK tax rules, individuals who are only non-resident for a short period (generally less than five years) may still need to account for certain income and capital gains once they resume UK residency. These provisions are designed to prevent people from avoiding tax by leaving the UK temporarily.

Letters are being sent to those who:

HMRC is asking taxpayers to check their filings from the 2018/19 tax year onwards. Where errors are identified, individuals have 60 days from the date of the letter to take corrective action.

Depending on the year in question, this may involve amending a return, making a disclosure, or confirming that the return is correct. Interest and penalties may apply where corrections are made late.

At Verallo, we work with individuals navigating cross-border tax rules, UK residency tax, and HMRC questions. If you think these changes could affect you, our team is here to advise on the next steps.

Simply get in touch.