Permanent emigration is not the same thing as temporary non-residence for UK tax purposes, and the difference catches well-intentioned landlords who later return within 5 years. The operative line is the TCGA 1992 s.10A temporary-non-residence trap: anyone who has been UK-resident in 4 or more of the 7 tax years before departure and who returns within a period of non-UK residence of 5 years or less has the gains realised on non-UK assets during non-residence deemed to arise in the year of return and chargeable to UK CGT then. Genuine clean-break emigration means more than 5 complete tax years non-UK-resident.
The FA 2025 long-term-resident IHT regime adds a second tail. A long-term UK resident under IHTA 1984 ss.6A-6C (UK-resident in 10 of the previous 20 tax years) remains within UK Inheritance Tax on worldwide assets for a tail period scaling 3 to 10 years post-departure, depending on the prior-UK-resident-year count. UK situs property (any UK BTL portfolio retained through the move) stays in UK IHT regardless of LTR status under IHTA 1984 Schedule A1. The historic "stay away 3 years to escape UK IHT" planning script anchored on deemed-domicile is obsolete for anyone with 14 or more prior UK-resident years.
This page walks the SRT split-year Cases 1 to 3 for the departure year, the NRL pre-move approval steps, the 60-day NRCGT return obligation on any UK property disposal during non-residence, the s.10A trap with worked examples, the LTR tail-period table comparing three landlord-emigrants at different prior-UK-resident-year counts, the Temporary Repatriation Facility for departing non-doms, and 13 of the most common permanent-departure landlord questions. For the short-term-departure variant of this analysis, see our UK property income for expats page. For the operational 12-month pre-departure checklist, see our 12-month pre-departure checklist. For the SRT decision-tree, see our SRT decision-tree page.
The permanently-vs-temporarily decision tree
In the first conversation about emigration, work through this nine-step sequence.
- Identify your departure year. When does your UK residence year-by-year actually break? SRT determines this, not intent. Use FA 2013 Sch 45 Part 1 cascade: automatic overseas tests first, then automatic UK tests, then sufficient ties.
- Check the split-year cases (Cases 1-3 for leaving). Case 1 (starting full-time overseas work); Case 2 (partner of Case-1 individual); Case 3 (ceasing to have any UK home). Split-year is NOT optional; statute determines application and priority per Sch 45 Part 3.
- Decide your minimum non-UK-resident period. To shed the s.10A 5-year recapture trap you need MORE than 5 complete tax years non-UK-resident (and you must have been UK-resident in 4 or more of the 7 preceding tax years to engage s.10A at all). If you cannot commit to 5+ complete non-UK tax years you are at risk of return-year recapture on gains realised during non-residence.
- Inventory your UK property holdings. Each UK rental property continues to be UK-taxable on rental income under ITTOIA 2005 Part 3 (individuals) or CTA 2009 Part 4 (companies); the domestic charge survives any treaty allocation. Each UK property disposal triggers NRCGT under TCGA 1992 s.1A plus the 60-day return regardless of whether tax is due.
- Apply for NRL1 (or NRL2 or NRL3) before the move. Without approval, your letting agent or tenant must withhold 20% basic rate. With approval you receive rent gross and self-assess on the UK return.
- Check your IHT LTR position under IHTA 1984 s.6A and run the tail-period table. If you have been UK-resident in 10 of the preceding 20 tax years you are LTR. On departure you remain LTR (worldwide-asset IHT exposure) for a tail period scaling 3-10 years depending on prior-UK-resident-year count. UK property is in UK IHT regardless of LTR status (UK situs).
- If you previously claimed remittance basis, consider TRF designation under FA 2025 s.41 and Schedule 10. Rates 12% / 12% / 15% across 2025/26, 2026/27, 2027/28; window closes 5 April 2028.
- Identify your destination-country DTA position. Article 4 tie-breaker may apply where dual-resident; Articles 6 and 13 allocate UK source-state rights on UK property regardless. See our country-specific DTA pages for bilateral detail.
- Engage specialist representation before the move. Pre-departure planning, tax-year-end disposals, and post-departure income and gain timing matter operationally.
Example one: Mrs Carter, UK landlord moving to Portugal permanently
Mrs Carter was UK-resident throughout 2018/19 to 2025/26 (8 of preceding 20 tax years), UK-born and UK-domiciled-of-origin. She sells her UK consulting business in 2025 and moves to a Portuguese coastal town in May 2026 intending to settle for life. She retains a London BTL flat and a Manchester BTL flat through the move.
SRT in 2026/27 departure year: depending on Portugal arrival date, UK day-count, workdays and ties, the year likely splits. Case 3 (ceasing to have any UK home) applies if she sells her London home before moving (her primary UK home goes); otherwise Case 1 if she starts full-time overseas work in Portugal. Either way, split-year treatment for 2026/27 treats her as UK-resident only for the pre-departure part-year.
s.10A position: she was UK-resident in 4 or more of the 7 preceding tax years (well above the gateway). To shed s.10A she needs more than 5 complete non-UK tax years (2027/28, 2028/29, 2029/30, 2030/31, 2031/32 gives 5 complete; she needs 2032/33 too, so 6 complete non-UK tax years to be safe). NRL on continuing UK rentals: she applies for NRL1 6 weeks before the May 2026 move; HMRC approves; her letting agents pay her gross from the approval date; she self-assesses UK rental income each year via SA100 plus SA105 with NRL6 evidence on file. NRCGT on continuing UK property: if she sells either UK BTL during non-residence, the 60-day NRCGT return is required regardless of whether tax is due. Residential rates 18% and 24% from 30 October 2024; AEA £3,000 (preserved for individuals retaining UK personal allowance under ITA 2007 s.56 because she is a UK national).
IHT LTR position: Mrs Carter has been UK-resident for 8 of the preceding 20 years, BELOW the 10-of-20 LTR threshold under IHTA 1984 s.6A. She is NOT LTR. On departure, she is immediately outside UK IHT for worldwide assets. UK property remains in UK IHT regardless (UK situs). Pre-FA-2025 contrast: under historic deemed-domicile, Mrs Carter would have shed UK-domicile (UK-domicile-of-origin) only through acquiring a Portuguese domicile of choice, a high common-law evidential bar (intent plus physical move plus cutting UK ties). Post-FA-2025 LTR is residence-based; domicile is irrelevant; the LTR 10-of-20 test resolves cleanly. Destination DTA: UK-Portugal Convention 1968 (verify currency at consultation date; check whether MLI-modified). Article 6 allocates UK source-state rights on UK property income; Article 13 on UK property gains; Article 4 tie-breaker available where dual-resident.
Example two: Mr Ellis returns to UK after 4 years in Australia
Mr Ellis was UK-resident throughout 2018/19 to 2025/26 (satisfies the s.10A 4-of-7-preceding gateway). He moves to Sydney in June 2026 for a 5-year corporate role intending eventually to settle in Australia. In 2028/29, while Australian-resident, he sells a portfolio of pre-departure-acquired Australian shares for a £210,000 gain. Plans change; he and his family return to the UK in May 2030 after 4 complete non-UK tax years (2026/27, 2027/28, 2028/29, 2029/30).
s.10A position: Mr Ellis's non-UK residence period is 4 complete tax years, within the "5 years or less" window. He had been UK-resident in 4 or more of the 7 preceding tax years. He is a temporary non-resident. Effect: the £210,000 gain on Australian shares is deemed to arise in his 2030/31 return year and chargeable to UK CGT in that year. UK property gain (separate analysis): if Mr Ellis had sold a UK BTL during his non-residence, NRCGT under TCGA 1992 s.1A applied at the time of disposal (60-day return plus 18% / 24% residential). s.10A does not overlay UK land (already in NRCGT); s.10A primarily catches non-UK situs assets.
Australian-side credit: Australia taxed him on the £210,000 gain in 2028/29 (Australian-resident at the time of disposal). UK CGT on the same gain in 2030/31 is creditable against the Australian CGT already paid, but only up to the lower of the two amounts. The Australian-side procedural mechanic for retrospective credit may be cumbersome; specialist Australian and UK advice needed. Planning lesson: to break s.10A, Mr Ellis needed MORE than 5 complete non-UK tax years. A 4-year stint with planned return crystallises the recapture risk on non-UK gains realised during non-residence. The planning rule is straightforward: if you are uncertain about staying away for 5 or more complete tax years, defer non-UK asset disposals until you have committed to the 6 or more year minimum, or realise them BEFORE departure to claim UK CGT at exit-year rates with PRR, AEA and loss-offset planning.
The IHT LTR tail-period table
The IHT consequence of permanent emigration depends critically on the prior-UK-resident-year count. Three landlord-emigrants compared at the same departure date (May 2026) illustrate the scaling.
| Landlord | UK-resident tax years in preceding 20 | LTR? | Required consecutive non-UK tax years to lose LTR | IHT exposure post-departure |
|---|---|---|---|---|
| Mrs Chen (moved from China 2020/21, UK-resident 2020/21-2025/26) | 6 | NO | N/A (already non-LTR) | Worldwide assets immediately outside UK IHT on departure; UK property in UK IHT regardless |
| Mr Khan (UK-resident 2013/14-2025/26) | 13 | YES | 3 consecutive non-UK tax years | Worldwide assets in UK IHT until end of approximately tax year 2029/30 (3 complete non-UK tax years break threshold) |
| Sir Roberts (UK-resident throughout 2007/08-2025/26) | 19 | YES | Approximately 9 consecutive non-UK tax years | Worldwide assets in UK IHT until end of approximately tax year 2035/36 |
The LTR tail scales dramatically by prior-UK-resident-year count. For long-term UK residents (the Sir Roberts archetype), worldwide-asset IHT exposure can extend nearly a decade post-departure. The pre-FA-2025 "3-year tail to escape deemed-domicile" advice anchored on s.267(1)(b) is wrong for anyone with 14 or more prior UK-resident years. Specialist private-client advice on the LTR analysis is essential before any irreversible step.
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Example four: Sra Marquez, departing non-dom with accumulated unremitted income
Sra Marquez is a Spanish citizen, UK-resident from 2016/17 to 2025/26 (claimed the remittance basis annually until 6 April 2025), with £620,000 of unremitted Spanish rental and Spanish dividend income accumulated across that period. She moves back to Madrid permanently in October 2026 (becomes Spanish-resident from 2026/27; split-year treatment may apply to the 2026/27 departure year).
TRF position under FA 2025 s.41 and Schedule 10: Sra Marquez is eligible to designate previously unremitted foreign income and gains for UK taxation at concessionary rates: 12% for designation in 2025/26 or 2026/27, 15% for designation in 2027/28. The window closes 5 April 2028. If she designates the full £620,000 in 2026/27, the UK tax bill is £74,400 (12% of £620,000) versus a worst-case marginal-rate-plus-historic-remittance position that could materially exceed that amount. Designation deadline per Schedule 10 paragraph 8(1) is 31 January 12 months after the end of the relevant tax year, so 31 January 2028 for a 2026/27 designation.
LTR position: Sra Marquez has been UK-resident for 10 of preceding 20 years (2016/17 to 2025/26 is exactly 10 years), so she just satisfies the LTR threshold under IHTA 1984 s.6A. Her LTR tail per the tail-period mechanism is roughly 3 consecutive non-UK tax years. Worldwide assets stay in UK IHT until the end of approximately 2029/30. CGT rebasing election: she qualifies for the FA 2025 Schedule 11 rebasing election on her non-UK assets (Spanish residential and commercial holdings not in the UK situs) provided the five Schedule 11 paragraph 1(1) conditions are met. UK property held during her UK residence (if any) is NOT eligible for the rebasing because of condition 3 (asset not UK-situs between 6 March 2024 and 5 April 2025). Practical sequencing: TRF designation in 2026/27 to clear the historic unremitted position at 12%, rebasing election where appropriate for non-UK assets, IHT planning for the 3-year LTR tail, and Spanish-side tax registration on arrival.
The clean-break checklist in practice
For the standard permanent-emigration case, the operational sequence in the 12 months before move is consistent across destinations. Six steps. First, apply for NRL1 (or NRL2 if a UK letting agent holds the rental account, or NRL3 if you let directly without an agent) six weeks before departure so gross-payment approval is in place from the move date. Second, inform HMRC of leaving via form P85 (or via the Self-Assessment return at the next year-end). Third, close or let your UK home before or immediately on move if you want Case 3 split-year treatment for the departure year; otherwise rely on Case 1 (full-time overseas work) or Case 2 (partner of a Case-1 individual).
Fourth, plan any post-departure non-UK asset disposals to AVOID falling within the 5-year s.10A window: defer until your sixth complete non-UK tax year or realise the gains BEFORE departure at UK CGT exit-year rates with PRR, AEA and loss-offset planning. Fifth, check your IHT LTR position under IHTA 1984 s.6A and run the tail-period analysis if you are LTR; consider lifetime gifting in the pre-departure window to use the 7-year PET clock on assets that will be in your estate during the LTR tail. Sixth, engage destination-country tax advice early because the FTC mechanics on UK rental income and any UK CGT paid run through the destination return, not the UK return; pre-arrival planning on the destination side typically saves more tax than post-arrival planning.
Where the destination state has a registration-tax or wealth-tax regime that the UK does not mirror (Spain, France, Switzerland, several others), the cross-jurisdictional position is intrinsically one-way: UK CGT and UK Income Tax paid on UK property is creditable on the destination side, but destination-side wealth taxes paid on UK property have no UK mirror to credit against. The UK position is simpler than most destination positions, but the destination-side complexity often determines the total tax cost of the move; engage destination counsel in parallel with UK pre-departure planning rather than in sequence.
Frequently asked questions
The FAQ list above covers what "leaving permanently" means for s.10A, SRT, and IHT LTR purposes, the SRT departure-year cascade, the split-year Cases 1-3 for leaving, the s.10A trap mechanics and what it does and does not catch, the NRL position for continuing UK rentals, the 60-day NRCGT return, the new IHT LTR regime and tail-period scaling, the FIG regime for someone who left and returns, the TRF for departing non-doms with accumulated unremitted income, the narrow CGT rebasing election (UK property excluded), the destination-country DTA framework, and the clean-break checklist in practice. For the inverse direction (someone newly arriving in the UK), see our forthcoming Bucket B arriving-in-the-UK page. For the short-term-departure variant and the four-overlapping-reasons framing, see our forthcoming Bucket B page on temporary departure. For specific destination-country bilateral detail, see our UK-Crown Dependencies DTA page.
Next step
If you are planning a permanent move overseas and you retain UK property, the SRT departure-year analysis, the s.10A 5-year-or-less line, the IHT LTR tail-period scaling, the NRL pre-move approval, and the destination-country DTA position need to be planned together in the year before departure, not after. Permanent-emigration planning that pre-dates FA 2025 (the LTR regime; the FIG / TRF / rebasing architecture) is obsolete on the IHT and non-dom sides. Contact us via the form below to discuss your specific position.