Tax residency when moving from the UK to Australia

Leaving the UK tax system is the pivot of any move, including to Australia. The UK taxes residents on worldwide income and non-residents only on UK-source income — so your status decides whether HMRC cares about your Australia salary.

The Statutory Residence Test (SRT)

Unlike some countries, the UK doesn't charge a general 'exit tax' when you leave. Instead, the Statutory Residence Test decides whether you're UK-resident in a given tax year, based on day counts and your ties to the UK. Split-year treatment can split the year you leave into a resident and a non-resident part.

The temporary non-residence trap

If you return to the UK within roughly five years, anti-avoidance rules can pull certain income and gains realised while you were away back into UK tax. If there's any chance you'll come back, plan around this before you sell assets or take pension lump sums abroad.

How Australia taxes you

Australia taxes its residents on worldwide income, so once you're an Australian tax resident your global earnings matter there. Line up your UK departure (and split-year treatment) with becoming Australian-resident so the same income isn't taxed twice.

Coordinate your UK split-year date with the date you become Australia resident. Overlap, and the temporary-non-residence rule, are where double-tax happens.