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Dual Resident 2021 (HS302)-GOV.UK





If you live in the UK and a different country and both countries tax your income, you are a dual resident.

If both countries have double taxation agreements, you can claim full or partial relief for UK taxes.

A double taxation agreement is an agreement between the two countries. This is to avoid paying taxes twice on the same income. To find out if you can claim UK tax cuts, you need to check the specific terms of your double tax agreement.

To find out if your country has a double taxation agreement with the UK, see How Double Taxation Treaties Affect Non-UK Residents with UK Income.

You can claim relief for the following types of income:

Banking and Building Association Interest Loyalty Most Working Pension Annuity UK Dividends

If you live in the UK and do not have a double taxation agreement with the UK or one of the following countries, you cannot claim relief.

Antigua Belize Brunei Greece Grenada Kiribati Malawi Montserrat Myanmar (Burma) St Kitts Sierra Leone Solo Bay Islands Tuvalu

In this case, you must receive a deduction for the foreign tax paid on your overseas income before you can claim a UK tax cut. Do not fill out the claim form.

Relief type full relief

You can claim a full relief from UK taxes if your double tax contract provides it. You may be required to pay taxes on income in your country under a double taxation agreement with the UK.

Partial relief

If a double taxation agreement stipulates that UK taxes attributable to income are lower than the normal domestic rate, you can claim partial relief from UK taxes. For example, if your UK base rate is 20% and your country has a 15% double tax contract with the UK, you can claim a 5% reduction.

Credit relief

If your income is taxed both in the UK and in your country of residence, you can claim a credit reduction. The country of residence provides a deduction for its own taxes on taxes paid on UK income. You will need to refund any taxes paid in your country of residence.

Residence Tie Breaker Rules

To find out which of the two countries you live in for the purpose of claiming relief, you need to check the rules for tying double tax contracts.

This rule is a series of tests. If one of the tests is met, there is no need to continue with the rest of the tests.

Permanent home

This is an accommodation that is always available for personal use during the year. You don’t have to own it. If you have permanent homes in both countries, go to a Critical Interest Testing Center. If you don’t have a permanent home in a country, go to the habitual residence test.

The center of attention that matters

You are a resident of a country with greater social, domestic, political and cultural connections. For example, you can build, live and work in other countries, and keep your home in the UK with family and property factors along with other factors, showing that the center of great interest remains in the UK.


This shows which of the two countries you live regularly, generally or customarily in. It tests the frequency, duration and regularity of stays, which are part of the routine established for each country. If you are unable to determine which country has habitual abode, or if both countries have habitual accomodation, go to the nationality test.


In general, you are a resident of a country where you are a national. However, you can have dual citizenship or be a citizen of both countries. Double taxation agreements can provide the tax authorities with the information they need to agree if this test is met.

If the tie breaker test shows that you are not a resident of the UK, you can generally claim a reduction in UK taxes.

If your tiebreaker test shows you are a UK resident, you will have to pay UK taxes on your worldwide income and income. Other countries may claim tax breaks if allowed by a double taxation agreement with the UK.

Overseas Residence Certificate

You will need this certificate if you want UK tax relief on UK income and your country of residence has a double taxation agreement with the UK. To obtain this, please contact your country’s tax authority.

The overseas residence certificate must prove that you are a resident under domestic law for that period.

You must attach the certificate to the claim form and send it with your tax return.

United States of America

The United States tax citizens on worldwide income regardless of where they live, so if you live in the United States, you do not need proof of residency.

You are a resident of the United States if you:

If you have a real, permanent, or residence in the United States, countries outside of the United Kingdom will not consider you a resident.

It shows how often you stay in the United States for a specific period of time. You will have a significant presence in the United States if you:

At least 31 days of the year, plus at least 183 days in all 2 and 3 years preceding it

If you spend part of your day in the United States, count it as a day.

For the purposes of this example, a day spent in the United States in the following year under test is counted as a third, and one day in the previous year counts as a sixth.


Geetha spends 48 days in 2018, 250 days in 2017 and 365 days in 2016 in the United States. Days spent in the United States in 2017 and 2016 count as a third and a sixth, respectively. The calculation for 2018 is as follows:

Year Calculation of days Total number of days 2018 48 days 1/1 = 48 2017 250 days 1/3 = 84 2016 365 days 1/6 = 61 total days = 193

Geetha passed both parts of the entity existence test. She lives in the United States under the national laws of the country.

How to claim relief

If you want to make a claim for:

Complete UK Full Tax Relief, Section 3 (c) of the Claim Form and UK Partial Tax Relief, Section 3 (d) of the Claim Form. UK Real Estate Investment Trust

If you receive a property income dividend and live in a country that has a double taxation agreement with the UK, you can claim relief. To claim full relief, file for partial relief by completing Section 3 (c) and Section 3 (d) of the claim form.

UK dividend payments since April 6, 2016

Dividend payments, introduced from April 6, 2016, mean that you do not have to pay taxes on the first part of your dividend income, regardless of your non-dividend income. The dividend is 2,000 from 2020 to 2021.

Dividends within an allowance are still included in the base or higher rate range, which can affect the tax rate you pay on dividends you receive in excess of 2,000 allowances. On over 2,000 dividends, you pay taxes at the following rates:

Basic interest rate versus dividend income 7.5% High interest rate versus dividend 32.5% Additional interest rate versus dividend 38.1%

If you haven’t paid taxes because it’s within your dividend allowance, you can’t claim an overseas tax credit on that income.

Depending on the terms of certain double-tax agreements, the dividend provisions in double-tax agreements may limit the maximum rate of applicable UK taxes (usually 15%).

For more information, see Tax Guidelines on Dividends.

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