Double taxation agreements: how Brits abroad avoid paying tax twice
Two taxmen, one income: a double taxation agreement is the rulebook that decides who gets it, and the forms are how you make it stick.
The short version
- If the UK has a double taxation agreement (DTA) with your new country, it sets out which country taxes which income and how much relief you get [1].
- Relief comes in three forms: relief at source (the UK doesn't deduct tax in the first place), repayment (you claim UK tax back) or credit relief (your new country lets you set UK tax against its own) [1][2].
- Most people claim UK relief with the standard DT-Individual form. There are country-specific forms for Australia, Canada, France, Germany, Ireland, Japan, New Zealand, the Netherlands, South Africa, Spain, Sweden, Switzerland and the USA [1].
- You send the form to the tax office in your new country first. It certifies that you're resident there and forwards it to HMRC or hands it back for you to send [1].
- Treaties don't protect gains on selling UK residential property from UK tax [1].
What a treaty does
Most countries tax their residents on worldwide income. The UK also taxes non-residents on UK income such as rent and pensions. Without a treaty, a Brit in Portugal drawing a UK workplace pension could be taxed on it twice.
A DTA sorts this out income by income. GOV.UK's summary is that the treaty "sets out which country taxes which income and how much relief you get", and that where the two countries' rates differ, you pay the higher rate overall [1]. Tax years may also start on different dates, which is why your Spanish or Australian return won't line up with 6 April [1].
The UK's treaties are published on GOV.UK in a collection grouped by country, each with a "[Country]: tax treaties" page holding the treaty and any later protocols [3]. HMRC also publishes a digest for non-residents with UK income, a summary of which treaties offer relief on which income. It hasn't been updated since its April 2018 version, so check the treaty text itself before relying on it [4].
Who taxes what: the usual pattern
Every treaty is different, so check yours. But most of the UK's treaties follow a similar pattern, and GOV.UK and HMRC's HS304 helpsheet describe the main lines [1][2]:
| Type of UK income | Usual treaty result for a resident of the other country |
|---|---|
| Workplace and private pensions | Often taxed only where you live; claim relief so the UK stops deducting tax |
| UK government service pensions | Most are taxed only in the UK |
| Bank and building society interest | Often full or partial relief from UK tax |
| UK dividends | UK tax often capped, usually at 15% under the treaty |
| Rent from UK property | Taxable in the UK; your new country may also tax it and give credit for UK tax |
| Pay for work done in the UK | Usually taxable where the work is done, with exceptions for short visits |
| Gains on UK residential property | Treaties don't give relief from UK tax here |
The State Pension is a special case. GOV.UK says non-residents usually don't pay UK tax on it [5], but your new country may tax it as a pension.
If both countries say you're resident
You can be resident in two countries at once: UK resident under the Statutory Residence Test and resident under your new country's rules. Treaties have a tie-breaker that usually looks first at where you have a permanent home, and then at where your personal and economic ties are strongest. GOV.UK points dual residents to HMRC's HS302 helpsheet for how to claim relief [1]. Our guide to the Statutory Residence Test covers the UK side.
Three ways to get relief
- Relief at source. HMRC tells the payer, for example your pension provider, to stop deducting UK tax, or to deduct only at the treaty rate. This is what most retirees want for a workplace pension. You apply with the DT-Individual form or your country's own form [1][6].
- Repayment. You've already been taxed in the UK and claim the excess back, either on the same form or on your Self Assessment return [1][2]. HS304 gives the example of a 20% UK basic rate on income where the treaty rate is 15%: the claim recovers the 5% difference [2].
- Credit relief. Where both countries are allowed to tax, such as rent from a UK flat, you pay the UK tax and claim a credit for it in your new country. HS304 notes this is claimed from your country of residence, not from HMRC [2].
The forms, step by step
Claiming UK relief with DT-Individual
The DT-Individual form lets you "apply for relief at source from UK Income Tax and to claim repayment of UK Income Tax" if you live in a treaty country [6].
- Check your treaty. Look up your country in GOV.UK's tax treaties collection and read the article for your type of income, such as pensions or interest [1][3].
- Pick the right form. Use your country's own form if it has one (the 13 countries listed above). Otherwise use DT-Individual. Germany and Sweden have their own DT-Individual versions [1][6].
- Get it certified. Send the form to the tax authority where you now live. It confirms you're resident there and either forwards the form to HMRC or returns it for you to post [1].
- Wait for HMRC. For a pension, HMRC instructs the provider to change your tax code. Any tax already taken can be repaid.
Claiming on your Self Assessment return
If you're already filing a UK return, for rent for example, you can claim treaty relief there. HS304 says to keep the original vouchers showing UK tax deducted, complete the relevant section of the claim form (section 3(a) for full relief, 3(b) for partial), attach a certificate of residence from your new country's tax authority and send it with the return [2]. US residents don't need the certificate [2].
Income you've already claimed relief on under a treaty doesn't need reporting on a return [5].
Claiming the credit abroad
Your new country handles credit relief on its own return. Keep your UK tax calculations, P60s and pension statements: the foreign tax office will want proof of what the UK took. A tax adviser who knows both countries can check that the credit is claimed properly.
Things to watch
- No treaty, no relief from the UK. Without a DTA you rely on whatever unilateral relief your new country offers.
- Conditions apply. Some treaties require you to be the "beneficial owner" of the income, or that the income is "subject to tax" in your new country. HS304 says to keep evidence [2].
- Tax rates still differ. A treaty stops double taxation; it doesn't stop you paying the higher of the two rates [1].
- Social security is separate. National Insurance and its overseas equivalents are dealt with under social security agreements and EU arrangements, not the income tax treaty.
- US citizens. The US taxes its citizens wherever they live, and the UK–US treaty has a "saving clause" for that. If your partner is American, our sister site ExpatStateside explains how tax treaties work from the American side.
If the paperwork has you reaching for the PG Tips, you're not alone; our community groups for Brits abroad swap notes on getting forms certified.
Sources
- GOV.UK: Tax on your UK income if you live abroad: if you're taxed twice
- HMRC: HS304 Non-residents: relief under double taxation agreements (2026), updated 6 April 2026
- HMRC: Tax treaties collection
- HMRC: Double taxation treaties: non-UK residents with UK income (digest), April 2018 version
- GOV.UK: Tax on your UK income if you live abroad
- HMRC: Double taxation treaty relief form DT-Individual, updated 23 November 2022