The UK Statutory Residence Test (SRT): How It Affects Your Pension and Tax

The UK Statutory Residence Test (SRT) was introduced by the Finance Act 2013 and came into force from 6 April 2013. It replaced a patchwork of HMRC guidance, case law, and practice that had grown inconsistent and difficult to apply. The SRT is now the definitive legal framework for determining UK tax residence.

For pension holders, the SRT matters in two key ways: first, it determines whether you can make meaningful pension contributions and claim full UK tax relief; second, it determines the scope of your UK tax liability on income — including whether pension drawdown is taxed only in the UK, or also in your country of residence.

The Three-Part Structure

The SRT operates in a hierarchy of tests. You work through them in order:

1. Automatic Overseas Tests (AOTs) — if you meet any, you are definitively NOT UK-resident
2. Automatic UK Tests — if you meet any, you are definitively UK-resident
3. Sufficient Ties Test — if neither (1) nor (2) applies, your residence is determined by the number of UK ties you hold combined with the number of days you spend in the UK

Automatic Overseas Tests: Definitively NOT Resident

You are not UK-resident if you satisfy any of the following:

AOT 1: Fewer Than 16 Days in UK

You spent fewer than 16 days in the UK during the tax year. Straightforward but narrow — most expats who maintain any UK connection will exceed this.

AOT 2: Full-Time Work Abroad (for UK Non-Residents)

You worked full-time abroad (35+ hours per week, averaged over the tax year) and:

• Spent fewer than 91 days in the UK, AND
• Had no more than 30 UK workdays in the tax year

This test is particularly relevant to professionals seconded overseas or the self-employed who have relocated work abroad.

AOT 3: Previously Non-Resident

If you were not UK-resident in each of the previous three tax years and spent fewer than 46 days in the UK in the current year, you are not UK-resident.

This test can catch returning expats on short UK visits who have been away for several years.

Automatic UK Tests: Definitively Resident

If you satisfy any of the following, you are UK-resident regardless of how many days you spend abroad:

AUT 1: 183+ Days in UK

You spent 183 or more days in the UK during the tax year. Clear-cut.

AUT 2: Only Home in UK

The UK is your only home (or your only home is in the UK for at least 91 consecutive days, and you spend time in it during the year). If you have sold your UK home and acquired a home abroad, you are unlikely to fail this test.

AUT 3: Full-Time Work in UK

You work full-time in the UK (35+ hours per week on average) during the tax year.

The Sufficient Ties Test

If you are not caught by either the AOTs or the AUTs, you look to the Sufficient Ties Test. This is the complex middle ground where most borderline cases fall.

You count how many UK ties you have from the following list:

Tie	Description
Family tie	A spouse, civil partner, or minor child who is UK-resident
Accommodation tie	You have a place to stay in the UK (owned or available to you) and use it at some point during the year
Work tie	You have 40+ UK workdays during the year
90-day tie	You spent 90+ days in the UK in either of the previous two tax years
Country tie	(Only for leavers — those who were UK-resident the previous year) The UK is the country in which you spent the most days

Day Counts vs Ties

The number of ties required to make you UK-resident depends on your days in the UK:

Days in UK	Ties Required for UK Residence
16–45	All 4 ties (leavers); any 4 (arrivals)
46–90	3 or more ties
91–120	2 or more ties
121–182	1 or more ties
183+	Automatic UK Test 1 applies — resident regardless

A leaver who spends 91 days in the UK with a UK family tie, a UK property available for use, and 90-day tie from prior years (three ties) would be UK-resident — even though they are spending the vast majority of the year abroad.

Common Errors and Misconceptions

"I'm abroad for more than 6 months so I'm non-resident"

This is one of the most frequently repeated — and incorrect — pieces of advice. Spending fewer than 183 days in the UK does not make you non-resident if you have sufficient ties. A person with 150 days in the UK and two ties is UK-resident.

"I cut my UK ties, so I'm non-resident from the day I left"

Residence is assessed on a tax year basis (6 April to 5 April), not from the date of departure. If you leave mid-year, you may be UK-resident for the entire tax year unless split-year treatment applies.

"I'll just stay under 90 days"

Monitoring days is important but not sufficient alone. The family tie — being married to a UK-resident spouse — alone means that spending 91+ days in the UK makes you UK-resident (one tie, 91 days = resident). Even 46–90 days with an accommodation tie plus a family tie results in UK residence.

Split-Year Treatment

In the year of departure, the SRT includes provisions for split-year treatment where certain conditions are met. This allows you to be treated as UK-resident for the UK-resident portion and non-resident for the remainder of the year.

There are eight different "cases" for split-year treatment. The most commonly applicable for leavers are:

• Case 1: Starting to work full-time abroad — the split-year begins when you start working full-time overseas
• Case 3: Ceasing to have a UK home — the split-year begins when you cease to have any UK home

Split-year treatment is valuable because it means that overseas income earned after the split-year start date is not subject to UK tax, even though you were technically UK-resident for part of the year.

Pension Implications of UK Tax Residence

As a UK Resident

• Full UK income tax relief on pension contributions up to 100% of earnings and the Annual Allowance (£60,000 for 2026/27)
• Carry forward of unused allowance from previous three years fully available (subject to earnings limits)
• UK tax on worldwide income — including overseas property income and foreign pension income

As a UK Non-Resident

• Pension contributions capped at £3,600 gross per year (with basic rate relief) unless you have UK-source earnings
• No carry forward available beyond the £3,600 limit without UK earnings
• UK tax only on UK-source income (including pension drawdown from UK schemes)
• DTA in country of residence determines whether UK or residence country taxes pension income

The Year of Departure

The year in which you leave the UK is often the most valuable for pension planning:

• If you are UK-resident for part of the year and have high UK earnings, you can make large contributions in that period and carry forward from prior years
• Once split-year commences, you can no longer claim UK relief on contributions above £3,600
• Act on pension contributions before the split-year point, not after

The New Foreign Income and Gains (FIG) Regime

The non-domicile (non-dom) rules were substantially reformed from 6 April 2025. The new Foreign Income and Gains (FIG) regime replaced the remittance basis:

• New UK residents who were not UK-resident in any of the previous 10 tax years can elect for the FIG regime
• Under FIG, foreign income and gains (including overseas pension income) are completely exempt from UK tax for the first four tax years of UK residence
• After four years, the individual is taxed in the UK on worldwide income like any other UK resident

The FIG regime is relevant for those relocating to the UK from abroad — including returning expats and internationally mobile HNW individuals. It means that foreign pension income (such as QROPS income) can be brought into the UK tax-free during the four-year FIG window.

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How Global Investments Can Help

Understanding your UK tax residence position is a prerequisite for virtually every pension planning decision — from contribution strategies to drawdown timing, QROPS transfers, and estate planning.

Our team works with UK-qualified tax advisers who specialise in residence, domicile, and international pension planning. We can help you:

• Determine your UK tax residence position under the SRT
• Model the split-year treatment implications for the year of departure
• Plan pension contributions to maximise relief in your final UK-resident year
• Understand how non-resident status interacts with your pension drawdown tax obligations
• Advise on the FIG regime for those returning to or newly arriving in the UK

Visit /uk-pensions/guides/ for related articles on drawdown taxation, QROPS, and annual allowance. This guide is for informational purposes only and does not constitute tax or financial advice. The SRT is a complex area of law — always seek qualified professional advice for your personal circumstances.