13 October 2026 – written by Steffen Kemmerzehl – Friendly Assist Accountancy – The Accounting Hub
Having income from another country can make your UK tax return feel more complicated than expected. Perhaps you have savings abroad, receive a pension from a previous country of residence, rent out a property overseas or earn money from clients in different countries.
You might already pay tax abroad and wonder whether you need to report the income again in the UK. Or perhaps you are unsure whether your time living or working overseas affects your UK tax position.
These are reasonable questions. The answer depends on the type of income you receive, your UK tax residence and the rules that apply to your particular circumstances.
This guide explains the main points to consider and when it may be worth getting some help.
Do I need to report foreign income to HMRC?
If you are UK tax resident, you will normally need to consider your income from both the UK and overseas. This can include:
- Interest from foreign bank accounts and savings.
- Dividends from overseas shares.
- Rental income from property abroad.
- Pensions received from another country.
- Employment income earned overseas.
- Freelance or self-employed income from international work.
The tax treatment is not the same for every type of income. Special rules, exemptions and reliefs may apply, so receiving money from another country does not automatically mean that you will owe additional UK tax.
It is also worth distinguishing between having foreign income and having to complete a tax return. Whether you need to file a Self Assessment return depends on your circumstances and the relevant reporting rules.
At Friendly Assist Accountancy, we help individuals with UK tax returns involving overseas income and cross-border circumstances. Our international tax services include reviewing UK tax residence, reporting requirements and available reliefs, with the scope of work agreed according to your circumstances.
You do not need to have all the answers before getting in touch. If you are unsure whether your foreign income needs to be reported, a first conversation can help establish what you need.
Why your UK tax residence matters
Your tax residence is one of the first things to establish.
If you are UK tax resident, you will generally need to consider your worldwide income, subject to any applicable reliefs or special regimes. If you are not UK resident, the position is different, although you may still have UK tax obligations.
Residence is not determined solely by your nationality, the country where you hold a passport or where you consider your permanent home to be. The Statutory Residence Test considers factors such as the time you spend in the UK, your accommodation, work and personal connections.
If you moved to the UK during the tax year, or left to live abroad, you may also need to consider whether split-year treatment applies. This is subject to specific conditions and is not automatic.
If your circumstances involve more than one country, it is worth establishing your residence position before deciding how to report your income.
What if I have already paid tax abroad?
This is a common concern.
Some countries deduct tax before paying interest, dividends, employment income or pension payments. You might therefore wonder whether the same income will be taxed twice.
In some circumstances, you can claim Foreign Tax Credit Relief against UK tax on income that has already been taxed overseas. A double taxation agreement between the UK and the other country may also affect which country has taxing rights or how relief is provided.
However, relief is not always equal to the amount of foreign tax you paid. It depends on the applicable rules, the type of income and the amount of UK tax attributable to it.
For example, imagine that you receive dividends from shares in a foreign company and tax is withheld before the dividends reach your bank account. You may still need to report the dividends on your UK tax return and establish whether relief is available for the overseas tax.
Keeping records of the gross income, foreign tax deducted and amounts received can help make this process easier.
Have the rules changed recently?
Yes. One important change took effect on 6 April 2025.
The previous remittance basis was abolished and replaced by the Foreign Income and Gains (FIG) regime. Eligible new UK residents may be able to claim relief on qualifying foreign income and gains arising during their first four years of UK residence, provided they meet the relevant conditions. These include at least ten consecutive tax years of non-UK residence before returning.
The rules are more detailed than this summary, and eligibility should be checked before making a claim.
This is particularly relevant if you have recently moved to the UK after living abroad for several years. The new regime may affect how your foreign income is treated, but it should not be assumed that all overseas income is automatically exempt.
HMRC published the 2025–26 foreign income pages and notes for the SA106 supplementary pages on 6 April 2026. The SA109 residence and FIG notes were subsequently updated on 28 September 2026.
If you are preparing your 2025–26 tax return, make sure you are using the guidance for the correct tax year rather than relying solely on older articles or previous advice.
You can read the official guidance here:
- HMRC: Tax on foreign income
- HMRC: Foreign income and gains regime
- HMRC: Foreign income tax return pages (SA106)
- HMRC: Residence and FIG supplementary pages (SA109)
What information should I gather?
You do not need to know the tax rules before asking for help. It is useful, however, to gather the information you already have.
Depending on your circumstances, this might include:
- Statements showing foreign income received during the tax year.
- Details of foreign tax deducted or paid.
- Rental income and expense records for overseas property.
- Pension statements and information about the country paying the pension.
- Employment or self-employment income records.
- Dates when you arrived in or left the UK, alongside relevant travel and work information.
- Details of previous tax returns or claims involving foreign income.
Not every document will be relevant to every person. The aim is to establish what income you received, where it arose, which tax year it relates to and what tax may already have been paid.
When might a review be helpful?
Some foreign income situations are relatively straightforward. Others require a closer look before the return can be completed confidently.
A review may be particularly useful if you have recently moved to or from the UK, receive income from several countries, have paid foreign tax, or are unsure whether a double taxation agreement applies.
It may also be worth checking your position if you have historically used the remittance basis, hold overseas investments with a particular tax treatment, or have income from an overseas pension or property.
The purpose is not to make every foreign income situation seem complicated. It is to identify which rules actually apply to you and avoid making assumptions that could lead to an incorrect return.
How Friendly Assist Accountancy can help
At Friendly Assist Accountancy, we help individuals with UK tax returns involving overseas income and cross-border circumstances.
We can review your situation, establish what information is needed and consider the relevant UK reporting requirements and available reliefs. Where residence or international tax rules are involved, the scope of work will depend on the circumstances of your case.
You do not need to have all the answers before getting in touch. If you are unsure whether your foreign income needs to be reported, a first conversation can help establish what you need.
If you have foreign income and are unsure how it affects your UK tax return, contact Friendly Assist Accountancy to discuss your circumstances and the support you may need.
Helping you stay on top of your accounts and tax.
I’m Steffen Kemmerzehl, an AAT Licensed Accountant at Friendly Assist Accountancy. I work with UK and international clients on tax residence, overseas income, pensions, property and other cross-border UK tax matters.
Please get in touch if you’re interested in arranging an appointment.