As a British citizen, you have the right to live in the UK without any restrictions. However, if you choose to live outside the UK for an extended period, there are some things to be aware of in terms of your rights and status as a British citizen.
How long can you live abroad and still be considered a UK resident?
If you leave the UK for a temporary purpose and intend to return within two years, you are still considered a UK resident for tax purposes. This means you still need to pay UK tax on your worldwide income and report your overseas assets to HMRC.
However, if you leave the UK intending to live abroad permanently or for at least three years, you become non-UK resident for tax purposes. You would no longer pay UK tax on your foreign income or report overseas assets. But you would still need to report and pay tax on any UK income sources.
Statutory Residence Test
Your residence status is determined by the Statutory Residence Test (SRT) which looks at various factors such as:
- How much time you’ve spent in the UK
- Your ties to the UK such as home, work, family
- The country you consider your permanent home
Based on the SRT, you are considered non-resident if:
- You spend less than 16 days in the UK in a tax year
- You leave the UK intending to live abroad for at least three tax years and spend less than 46 days in the UK on average per year
You may also be non-resident under split-year treatment if you leave or arrive in the UK part way through the tax year.
Dual Residency
It’s possible to be considered resident in both the UK and another country at the same time under each country’s tax rules. This dual residency would mean you are liable to tax on the same income and gains in both countries.
To avoid double taxation, the UK has double taxation agreements with many countries which set out tiebreaker tests to determine a single country of residence.
How long can you live abroad and retain British citizenship?
As a British citizen, you can live abroad indefinitely without losing your citizenship. British nationality law does not require citizens to reside in the UK to retain their status.
The only ways you can lose British citizenship are if:
- You voluntarily renounce your citizenship by applying to the Home Office.
- Your citizenship is revoked if it was obtained fraudulently or the Home Secretary deems it would be in the public interest.
Dual nationals could be deprived of British citizenship if they act in a manner seriously prejudicial to the UK’s vital interests. However this power is rarely used.
Descendants born overseas
In most cases, children born outside the UK to British parents are automatically British citizens by descent. This lasts indefinitely across generations so long as each generation registers the birth with the UK authorities.
The UK abolished the previous rule limiting citizenship by descent to the first generation born abroad. So British citizenship can now pass on indefinitely to subsequent generations overseas as long as they keep registering.
Naturalisation
British citizens who give up their citizenship can potentially resume it later on through naturalisation provided they fulfil the relevant residency and other requirements.
For adults, this generally means living legally in the UK for 5 years before applying for naturalisation. There are exemptions for spouses of British citizens.
Can you live abroad and keep a British passport?
Yes, as a British citizen you retain the right to hold a British passport regardless of where you live. Your passport remains valid for 10 years from the date of issue.
You can renew your British passport from abroad, as long as you provide the required supporting documents.
Passport Renewal Requirements
To renew your passport from overseas, you typically need to provide:
- Your current British passport
- A colored passport photo according to UK specifications
- Supporting documents such as a local police report if your passport is lost/stolen
- The appropriate fee – it costs more to renew from abroad than in the UK
The process and requirements can vary depending on the country you are in. You apply through the local British embassy, high commission or consulate.
Does living abroad impact state pension or benefits?
As a British citizen, you may still be eligible for certain state benefits and pensions even while living abroad. However, the rules can be complex and depend on your destination country.
State Pension
You can continue receiving your UK State Pension while living overseas if you have paid enough UK National Insurance contributions to qualify. The payment rate is the same regardless of where you live.
However, if you move to live in Canada, Australia, New Zealand or the USA, the UK has reciprocal agreements whereby you pay local social security taxes and collect your UK pension from the local government.
Benefits
For non-contributory benefits such as incapacity or disability benefits, you typically need to live in the European Economic Area (EEA) to receive them abroad. There are exceptions for pensioners retiring abroad.
Contributory benefits like Jobseeker’s Allowance can be exported abroad for up to 3 months while you look for work in the EEA and Switzerland. If you reside outside these areas, you normally cannot collect benefits abroad.
The Benefits Abroad team at the International Pension Centre can advise you which benefits may apply based on where you live.
Healthcare
Your right to state healthcare like the NHS depends on your destination country:
- Within the EEA, you can get emergency treatment under the EHIC card.
- In Australia or New Zealand, you can enroll in the local public healthcare system.
- Outside these areas, you will not be eligible for free NHS treatment.
So you need comprehensive health insurance when moving outside the EEA.
Does living overseas impact your UK credit rating?
Living abroad can affect your UK credit score both positively and negatively depending on your circumstances:
- Closing UK bank accounts and credit cards reduces your available credit which impacts your credit utilization ratio.
- Having no active UK credit history makes it harder to build credit over time.
- Defaulting on UK debts while abroad damages your credit score.
- Paying off debts before moving can improve your credit rating.
Some ways to maintain your UK credit score from overseas include:
- Keep one active UK bank account and credit card.
- Give family power of attorney over finances to manage standing orders/direct debits.
- Apply for a UK-based travel credit card you can use abroad.
- Check your UK credit report annually and dispute errors.
Returning to the UK
When returning to the UK after living abroad, you may need to re-establish your UK credit history by:
- Applying for a new UK bank account and credit card.
- Taking out a UK mobile phone contract.
- Registering on the electoral roll at your new UK address.
- Applying for appropriate utility bills in your name.
How long can you live abroad and keep a UK driving licence?
As a British citizen, you can normally keep your UK driving licence valid while living overseas provided you meet certain conditions:
- You must renew your UK licence as normal every 10 years to keep it valid.
- If you become resident in another EU/EEA country, you can only use your UK licence for 1 year before needing to exchange it for a local version.
- Outside the EU/EEA you are typically permitted to use your UK licence as long as it remains valid.
However some countries have bilateral agreements to recognize UK licences for longer or impose outright mandatory exchange rules. So check the local driving rules in your new country of residence.
Renewing from abroad
To renew your UK driving licence from overseas you will need to:
- Complete DVLA form D9.
- Provide a new passport photo according to UK rules.
- Include your current UK licence.
- Pay the renewal fee by MasterCard or Visa debit/credit card.
The DVLA does not accept foreign driving licences as sufficient ID to renew your UK licence. Rules for driving on an expired UK licence vary between different countries.
How long until you become non-resident for council tax?
Your council tax residence status changes as soon as you stop living in a property and move abroad. However, you need to properly notify your local council of this change.
To end your council tax liability, you must complete these steps:
- Inform the council in writing you have left the property and are moving abroad. Give them a forwarding address.
- Return your confirmation letter accepting sole liability for council tax.
- Notify your landlord you are leaving if renting.
- Cancel any council tax discounts, exemptions or benefits.
- Provide meter readings from utilities to close accounts.
Your council tax obligation ends from the date you provide evidence you left the property. Refunds may apply if you overpaid any council tax.
Second homes
If you own a second home in the UK that you keep while living abroad, you remain liable for paying council tax on it. Second homes do not qualify for discounts.
However, you can apply for a council tax exemption if you:
- Furnish the home so it is available for short-term rents
- Renovate the property while you are abroad
The property can’t be occupied in any way to qualify for an exemption.
How long until you can stop filing UK income tax returns?
Once you are no longer resident in the UK, you only need to file UK income tax returns if you have UK source income. There is no minimum time period before you can stop submitting UK returns.
You will typically need to keep filing a UK return if you have:
- Rental income from UK properties
- Bank interest or investments based in the UK
- A UK private pension or annuity
- Income from a UK business or partnership
However, you may not need to file a return if your UK income is below the personal allowance. The UK has double tax treaties with many countries to avoid you being doubly taxed.
You can apply for non-resident landlord status to receive UK rental income with no UK tax deducted if you live abroad. Submit form NRL1 to HMRC to confirm non-resident status.
Returning to the UK
If you take up residence in the UK again, you will again have full UK income tax obligations. As a UK resident, you must report worldwide income over the personal allowance threshold on a UK return.
How long can you be out of the UK before losing settlement rights?
Settlement in the UK generally refers to having permanent residence or ‘indefinite leave to remain’ status. The rules on absences affecting your settlement rights depend on your current immigration status:
| Status | Maximum absence |
|---|---|
| Permanent Residence | Up to 5 years |
| Indefinite Leave to Remain | Up to 2 years |
| British Citizen | No maximum absence |
So as a British citizen, you never lose the right to settle in the UK regardless of how long you live abroad. But for non-citizens, prolonged absences can invalidate their permanent residence or ILR status unless specific criteria are met.
Permanent Residence
Non-EEA nationals with at least 5 years continuous residence may lose their permanent residence status if they are outside the UK for more than 5 consecutive years.
Certain absences such as military service or study abroad do not break your continuous residence. You also may be able to reapply for permanent residence if you return after a longer absence.
Indefinite Leave to Remain
For indefinite leave to remain, absences exceeding 2 continuous years normally invalidates this status. However there are exceptions if your absence was due to work or study.
You can return to the UK within those 2 years to retain ILR. Overstaying the maximum break means you must apply again for permanent residence.
Conclusion
As a British citizen, you can live outside the UK indefinitely without losing your nationality or rights. However, you must consider how lengthy absences impact your tax residence, benefits eligibility, driving licence validity and immigration status if you have dual citizenship.
Checking the specific rules for your destination country will ensure you do not jeopardize your status and entitlements as someone living long-term or permanently abroad. With some foresight and planning, you can enjoy your time overseas without losing your rights as a British citizen.