Living in the United Kingdom: tax residency, 2026-27 tax brackets and Inheritance Tax

In the UK, a tax resident pays UK tax on all their income, whether UK or foreign. A non-resident only pays tax on their UK income. You are considered a resident after 183 days of presence in the UK during the tax year, which runs from April 6 to April 5. For 2026-27, income tax is 20, 40, or 45 % depending on the tax bracket, and capital gains tax is 18 or 24 %. The figures on this page apply to England, Wales, and Northern Ireland.

Your British tax residence

The Statutory Residence Test determines tax residency. The tax year runs from April 6th to April 5th.

Resident. If you spent 183 days or more in the UK during the tax year, you are considered a tax resident. This is an automated test published by HM Revenue & Customs (HMRC, the UK's tax authority).

Non-resident. A person who has been a resident for at least one of the three previous years is considered a non-resident if they spend fewer than 16 days in the UK during the year. A year spent in a split year counts as a year of residence for the purposes of reviewing those three years.

Other tests exist. They are not detailed here, particularly those that combine the number of days and links to the country. These can be found in the official HMRC guidelines.

What the residence changes. A resident normally pays UK tax on all their income, whether it comes from the UK or abroad. A non-resident only pays tax on their UK income. The same residency rule applies to capital gains.

Becoming a British resident does not, in itself, cease to be a French tax resident. According to administrative guidelines (BOI-IR-CHAMP-10), meeting one of the criteria for French tax residence is sufficient for you to be considered a French resident. These rules are explained on our page about leaving France.

Income tax 2026-27

For 2026-27, in England, Wales and Northern Ireland, HMRC publishes the following figures:

These brackets apply to taxable income, that is, after deductions. The Personal Allowance decreases by £1 for every £2 of income above £100,000; therefore, for high incomes, the table does not apply as is. Scotland has different brackets and rates. These have not been included here.

Dividends in 2026-27

Dividends have their own rates: 10.75 % at the basic rate, 35.75 % at the higher rate, and 39.35 % at the additional rate. A dividend allowance of £500 applies.

Capital gains in 2026-27

Capital Gains Tax for individuals is either 18 % or 24 %. According to GOV.UK, the portion of gains that falls within the basic income tax bracket is taxed at 18 %, and anything exceeding that is taxed at 24 %: the rate therefore depends on total taxable income. The annual allowance is £3,000 for 2026-27.

The Inheritance Tax

Inheritance Tax (UK inheritance tax) is 40 % at the standard rate. It applies to the portion of the estate exceeding £325,000. According to GOV.UK, this threshold can be raised to £500,000 when the residence is passed on to children or grandchildren; the conditions are detailed on the official website. In principle, no tax is payable if the estate is below this threshold, or if the excess goes to the spouse, partner, a charity, or a registered amateur sports club.

The long-term resident. Since April 6, 2025, a person is considered a long-term resident for Inheritance Tax purposes if they have been a tax resident in the UK for 10 or more years within the previous 20 years. Their assets located outside the UK may then be subject to Inheritance Tax upon transfer or death. Our page on the FIG scheme and Inheritance Tax provides further details.

The end of the "non-dom" regime and the FIG regime

Since April 6, 2025, the remittance basis tax regime has been replaced by a residency basis tax regime. All UK residents are taxed on their worldwide income and gains, subject to the Foreign Income and Gains (FIG) regime.

The FIG scheme allows a new arrival, after at least 10 consecutive tax years of non-residence in the UK, to benefit from relief on foreign income and gains earned during their first four years of residence. Nationality and residence are not taken into account. Our dedicated page details the scheme's features and limitations.

Settling in: passport, visa

France Diplomatie, whose page was updated on October 5, 2026, indicates that a valid passport is required. Only those with "settled" or "pre-settled" status (withdrawal agreement) may still use an identity card, until further notice.

A short stay of up to six months for tourism, family visits, or most short business trips does not require a visa, but France Diplomatie indicates that an Electronic Travel Authorization (ETA) is required: £20, valid for two years or until the passport expires, whichever is sooner. Working, studying, or settling in requires a long-stay visa. Visa categories, their requirements, and costs are not detailed here. The same applies to health insurance coverage, a National Insurance number, and registration with HM Revenue and Customs (HMRC).

Numerical example (fictitious profile)

Situation. A French citizen, a fictitious profile, has been a UK tax resident for three years. During the 2026-27 tax year, he sells shares in a British company with a capital gain of £50,000. His taxable income for the year, after allowances and excluding capital gains, is £20,000.

Issue. He knows the two capital gains tax rates, 18 % and 24 %. He does not know how they are allocated to his gain.

Strategy. He deducts the annual allowance of £3,000, then measures the portion of his gain that falls within the basic income tax bracket (£37,700).

Result. The taxable base is £47,000 (£50,000 − £3,000). £17,700 remains in the basic tax bracket (£37,700 − £20,000): £17,700 is taxed at 18 %, i.e., £3,186, and the remaining £29,300 at 24 %, i.e., £7,032. The tax payable is £10,218. Depending on the portion of the gain that falls within the basic tax bracket, it would be between £8,460 (all at 18 %) and £11,280 (all at 24 %). This calculation does not take into account any other rules specific to his situation.

What changes depending on your situation

• The number of days spent in the UK and your links with the country, which determine your residence.
• The part of the UK where you reside: Scotland has different rates.
• The nature of the income: salary, dividend, capital gain.
• The number of years of residence spent determines eligibility for the FIG scheme upon arrival and long-term residence afterwards.
• The location of your assets, for Inheritance Tax purposes.

These elements are examined on a case-by-case basis. No tax result can be announced without this examination.