UK Tax Saving: Split Year Guide

What if you could legally reduce your UK tax bill just by meeting a few clear conditions?
That’s exactly what Split Year Treatment allows in the right circumstances.

Tthe default rule is that your residence status is assessed for the entire tax year (6 April to 5 April). But in certain situations, the year can be “split” — meaning you’re only taxed as a UK resident for part of the year.
It’s like pressing pause on UK tax once you leave, or only starting it after you arrive. And yes — it can lead to significant tax savings.

Split Year Treatment is available in 8 defined cases, depending on your specific movements and lifestyle changes. Let's walk through each one with real-life examples so you can understand where you might qualify.

Case 1: Starting Full-Time Work Overseas

Who it applies to:
You leave the UK partway through a tax year to start full-time work abroad and meet the overseas work criteria.

Example:
Emily leaves the UK on 1 July 2024 to work full-time in Singapore. She works at least 35 hours a week, takes minimal holidays, and maintains no home in the UK. She qualifies for split year treatment — and is taxed as a UK resident only from 6 April to 30 June 2024. Her Singapore income after that isn’t subject to UK tax.

Case 2: Accompanying a Partner Who Starts Full-Time Work Overseas

Who it applies to:
You accompany your spouse or civil partner who qualifies under Case 1 and move overseas with them.

Example:
James’s wife moves to Canada in August 2025 for a full-time job. James joins her with their children in September. He gives up his UK job and home. He qualifies for split year treatment under Case 2 from the date of his move.

Case 3: Ceasing to Have a Home in the UK

Who it applies to:
You leave the UK and stop having any home in the UK, and you start to live abroad.

Example:
Sophie sells her UK home in October 2024 and moves to France permanently. She no longer has any UK accommodation. She qualifies for split year treatment from the date she no longer had a UK home.

Case 4: Starting to Have a Home in the UK Only

Who it applies to:
You move to the UK and begin to have your only home here, with no home overseas.

Example:
Ben moves from Dubai to the UK in January 2025 and buys a house in Manchester. He immediately starts living in it as his only home. He qualifies for split year treatment from the date he started living in the UK home.

Case 5: Starting Full-Time Work in the UK

Who it applies to:
You arrive in the UK and begin working full-time here.

Example:
Anna returns to the UK from Hong Kong in May 2024 and begins a new job working 40 hours a week. She meets the working hours and other SRT conditions. Her UK tax residence starts from the date she began working — not 6 April.

Case 6: Ceasing Full-Time Work Overseas

Who it applies to:
You return to the UK after stopping full-time work abroad and were previously non-resident.

Example:
David finishes his long-term contract in Dubai in June 2025 and returns to the UK in July. He doesn’t resume full-time overseas work. He qualifies for split year treatment — taxed as UK resident only from July onwards.

Case 7: Accompanying a Partner Who Ceases Full-Time Work Overseas

Who it applies to:
You return to the UK with a partner who has stopped full-time work abroad (under Case 6).

Example:
Lisa returns to the UK with her partner Tom after he finishes his full-time role in the US. She hadn’t worked abroad but lived with him during his overseas assignment. She qualifies under Case 7, with her residence status changing the same day they return.

Case 8: Starting to Have a Home in the UK

Who it applies to:
You move to the UK and begin to have a UK home — even if you still have one abroad.

Example:
Rachel rents a flat in London in August 2025 while still owning a property in Spain. She begins living in the UK home permanently. Although she hasn’t sold her overseas home, she qualifies under Case 8 from the date she started living in the UK home.

Not Sure Which Case Applies to You?

The rules sound straightforward — but applying them correctly isn’t always easy.
Each case has very specific criteria around timing, work hours, housing status, and prior residence.

If you’re moving into or out of the UK, understanding which split year case (if any) applies could significantly impact how much UK tax you pay.

Compared to the cost of paying a professional accountant for the proper filing, handling things correctly may save you even more tax, money and trouble. It’s especially crucial to get the key and exceptional situations right — avoiding mistakes like incorrectly claiming tax-free allowances, which HMRC lets you self-declare at first, until they catch it later.

Don’t Guess. Talk to an Accountant.

Getting this right could reduce your UK tax liability by thousands. Getting it wrong could mean unexpected taxes, penalties, or missed savings.

Let our accountants at Elaga, help you review your timeline, employment, and living arrangements to see if you qualify for Split Year Treatment.
We can walk you through eligibility, help prepare your self-assessment, and make sure you get the relief you're entitled to.

Need Assistance from a UK Professional Accountant ?

If you have any questions about Split Year Treatment or any other UK tax matters, feel free to get in touch. We’re happy to help you assess your position and identify the best way forward. The professional team at Elaga Accountancy has extensive experience assisting clients based on their real-world circumstances, while balancing personal goals, tax efficiency, and compliance requirements.

Seek Professional Help

If you have questions about split year application or your tax return, contact Elaga Accountancy now, we’d be happy to assess your company’s situation and walk you through your options. Don’t rely solely on your gut feeling or a random forum post. The team at Elaga Accountancy brings years of real-world experience to help you make confident, informed decisions, aligned with both your business structure and personal goals.

***Contact us to learn more.

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