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Tax Planning • March 23, 2026

5 Tax Mistakes Expats Should Avoid

Hoxton Blog • 5 Tax Mistakes Expats Should Avoid

  • Tax Planning

Tax Mistakes British Expats Should Avoid to Keep Their Finances on Track

Living abroad often brings new opportunities, but it also introduces additional layers to financial planning. For British nationals, leaving the UK does not always mean leaving UK tax obligations behind.

The position depends on your residence status, the type of income or assets involved, and how different jurisdictions interact.

As we approach the end of the UK tax year on 5 April 2026, this is a practical moment to review how your arrangements are structured. A clear, coordinated approach can help reduce unnecessary complications and support more informed financial decisions. 

Below are five commonly overlooked areas that are worth reviewing. 

  • 1. Assuming UK Tax Stops Automatically When You Move Abroad

    One of the most common misunderstandings is that UK tax no longer applies once you leave the country.

    In practice, your position depends on the Statutory Residence Test, which determines whether you are considered UK resident for tax purposes in a given tax year. It is also possible for a tax year to be split if you move part way through it.

    If you are non-UK resident, you are generally not taxed in the UK on foreign income. However, UK-source income, such as rental income from UK property, may still fall within the UK tax system.

    This means it is important to avoid broad assumptions. Instead, your position should be reviewed based on your residence status for each tax year and the specific types of income you receive.

    With the tax year end approaching, this is a useful point to confirm that your residence status for 2025 to 2026 is clear and properly reflected in your records.

  • 2. Overlooking Double Taxation Relief

    For expats earning income across more than one country, understanding how tax systems interact is essential.

    The UK has double taxation agreements with many jurisdictions. These agreements are designed to reduce the risk of the same income being taxed twice. In many cases, relief is available through a foreign tax credit, which offsets tax paid overseas against UK liabilities.

    However, this process is not always automatic. Relief often depends on how income is reported and how the agreement applies to your specific situation. If handled incorrectly, it can result in either overpaying tax or creating additional administrative work.

    As the tax year draws to a close, it is worth reviewing:

    • Where income has been earned
    • Where tax has been paid
    • Whether supporting documentation is available

    Taking a coordinated view across jurisdictions helps ensure that relief is applied correctly and consistently.

  • 3. Missing a UK Self Assessment Obligation

    Living overseas does not necessarily remove the need to file a UK tax return.

    You may still need to complete a Self Assessment return if you receive UK income that is not taxed at source, or if you have reporting obligations linked to foreign income or gains, depending on your circumstances.

    Timing is important. The current tax year ends on 5 April 2026, and the filing deadline for that year will be 31 January 2027. The deadline for the previous tax year has already passed.

    This makes the period before the tax year end a useful time to:

    • Confirm whether you need to register or remain registered
    • Review UK income streams
    • Ensure records are complete for the year to date

    A proactive approach helps maintain consistency and reduces the likelihood of issues arising later.

  • 4. Letting Records Become Disorganised Across Jurisdictions

    When financial arrangements span multiple countries, record keeping becomes more important.

    Income may be received in different currencies, assets may be held in different locations, and tax may be paid in more than one jurisdiction. Without a clear system, it becomes harder to track what has been reported and where.

    Disorganised records can lead to:

    • Incomplete or inconsistent reporting
    • Difficulty claiming tax relief
    • Challenges when reviewing your overall financial position

    A structured approach typically includes:

    • Keeping clear records of all income sources
    • Retaining supporting documents such as bank statements and tax certificates
    • Tracking asset values and transactions
    • Recording tax paid in each jurisdiction

    With the tax year end approaching, this is a practical time to bring records up to date while information is still readily available.

  • 5. Relying on Outdated Inheritance Tax Assumptions

    Inheritance tax is often overlooked by those living abroad, and the rules have changed in recent years.

    From 6 April 2025, the UK moved away from the previous deemed domicile framework for inheritance tax and introduced a system based on long-term UK residence. This means the scope of UK inheritance tax now depends on how long you have been UK resident over time, rather than relying solely on domicile concepts.

    As a result, older assumptions may no longer reflect your current position. In some cases, overseas assets may still fall within the scope of UK inheritance tax, depending on your residency history.

    This makes it important to review:

    • How assets are held across jurisdictions
    • Whether wills reflect your current circumstances
    • How UK rules interact with local laws

    Inheritance planning is most effective when it forms part of a wider financial framework, rather than being considered in isolation.

Bringing These Areas Together

Each of these points is important individually, but the greater value comes from how they are managed together.

For expats, financial planning rarely sits within one country. Income, assets, and long-term objectives often span multiple jurisdictions. Without coordination, this can lead to fragmented decision making.

A more structured approach focuses on:

  • Understanding your residence position year by year
  • Aligning reporting across jurisdictions
  • Maintaining clear and consistent records
  • Reviewing your position regularly as circumstances change

As we approach the end of the tax year, this is a natural point to step back and review how these elements fit together.

How We Support Clients

We work with internationally mobile clients to bring clarity and structure to their financial arrangements.

This involves taking a coordinated view across jurisdictions, helping ensure that tax considerations, asset structures, and longer-term planning are aligned.

Our work typically includes:

  • Reviewing cross-border tax exposure
  • Supporting UK reporting requirements
  • Considering how assets are structured and held
  • Aligning inheritance planning with wider financial objectives
  • Providing ongoing guidance as circumstances evolve

If you would like to review how your current arrangements align with the latest rules and the upcoming tax year end, we can arrange an initial conversation.

Disclaimer

This article is provided for general information purposes only and is not intended to be personal financial or tax advice. The content is based on current UK legislation and HMRC guidance at the time of writing, which may be subject to change.

Tax treatment depends on individual circumstances, including residence status, domicile or long-term residence position, and the jurisdictions involved. The examples and scenarios outlined may not be applicable to your specific situation.

You should not rely on this article as the sole basis for making financial decisions. Consider seeking personalised guidance before taking any action.

Hoxton Wealth does not accept responsibility for any loss arising from reliance on the information contained in this article.

How can we help

We have a highly skilled and experienced team of experts at Hoxton Tax, specialising in cross-border tax planning and helping clients in more than one jurisdiction avoid unnecessary taxation on their asset portfolios.

Mark Routen’s team will be happy to discuss all aspects of your tax planning concerns, including:

Contact the tax team today for a free initial discovery call.

About Author

Lois Vallely

March 23, 2026

Lois Vallely is Head Copywriter at Hoxton Wealth, where she leads the firm’s written content across marketing, client education, and thought leadership, with a particular focus on cross-border financial planning, pensions, tax, and estate considerations for international clients.

Before joining Hoxton Wealth, Lois spent several years in financial journalism, most notably as Chief Reporter at Money Marketing. There, she covered the UK advice and wealth-management sector in depth, producing features, analysis, and commentary on adviser businesses, industry consolidation, technology, and the evolving role of financial planning.

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