In the United Kingdom (UK), the tax treatment of investment income for non-residents depends on various factors, including your residency status, the type of income, and any applicable tax treaties between the UK and your home country.
Under certain circumstances, non-UK residents may be able to claim "disregarded income" status for their UK-sourced investment income such as dividends and interest. However, rental income from UK properties will still be subject to UK taxation. Disregarded income status means that the income is not taken into account for UK tax purposes, and thus not subject to the UK income tax. However, it is important to note that specific conditions must be met to qualify for this treatment.
To determine your eligibility for disregarded income status, you should consider factors such as your residency status, the nature of the income (e.g., dividends, interest), and any relevant tax treaties. These treaties can provide provisions for the taxation of specific types of income and may include rules on residency, permanent establishment, and other factors that affect the tax liability of non-residents.
The Statutory Residence Test (SRT) in the United Kingdom provides special split year treatment rules for individuals who move overseas or become non-residents mid-way through the tax year. These rules help determine an individual's residence status and how their income will be taxed.
When the split year rules apply, the tax year is divided into two parts: the UK part and the overseas part. The individual is treated as becoming a non-UK resident on the date they leave the UK, and their tax liability is calculated separately for each part of the year.