UK Tax and HMRC for British Expats in Argentina

If you're moving from the UK to Argentina, your relationship with HMRC doesn't end the moment your flight takes off. The UK taxes based on residence and domicile, and navigating this correctly matters.

The Statutory Residence Test

For related context, see HMRC Form P85 Explained: What British Expats Moving to Argentina Actually File.

The SRT determines whether you are UK tax resident in any given tax year. The rules are specific and worth understanding before you move.

Automatically not UK resident if:

• You have been UK resident in fewer than 3 of the previous tax years AND spend fewer than 46 days in the UK in the current tax year
• Or you work full-time abroad for the whole tax year AND spend fewer than 91 days in the UK

Automatically UK resident if:

• You spend 183+ days in the UK in the tax year
• Your only home is in the UK and it's available for at least 91 days, and you visit it at least once

For most people who have relocated to Argentina, becoming non-resident is achievable, but the precise number of UK days you can spend visiting is constrained. Keep track.

What to Do Before You Leave

File form P85. This tells HMRC you're leaving the UK to live abroad and establishes your claim to non-resident status from that date. You can do this online through your Government Gateway account or by post. It's not legally required, but failing to do it creates administrative problems and can result in HMRC continuing to tax you as a UK resident.

Sort your final UK tax return. If you file self-assessment, make sure you're up to date. If you have income after departure (rental income, interest, dividends), you'll continue to file as a non-resident with a UK income source.

UK Income That Remains Taxable in the UK

Even as a UK non-resident, you remain liable for UK tax on:

• UK rental income. The Non-Resident Landlord scheme requires your letting agent (or tenant, if you manage directly) to deduct basic rate tax at source, unless you've applied to HMRC to receive rent gross.
• UK dividends and interest (subject to domestic rules, allowances and the treaty)
• UK employment income for duties performed in the UK
• Some pension and government-service payments. Do not treat every pension alike: private pensions, the State Pension and government-service pensions can fall under different treaty provisions.

The UK State Pension: The Freeze Rule

This is crucial for anyone planning to retire to Argentina on their UK State Pension.

Argentina is not on the UK government's list of countries where State Pension increases are paid. This means if you move to Argentina, your State Pension is frozen at the rate when you first claim it (or at the rate when you move there, if you're already claiming). You will never receive the annual uprating that UK residents and those in qualifying countries receive.

Over 20 years of retirement, this can amount to tens of thousands of pounds of lost income. It's a significant financial factor that every prospective retiree to Argentina should calculate carefully.

The UK-Argentina Tax Position

The UK and Argentina have a double-taxation convention. Its result depends on the income category, residence under the treaty and, for pensions, whether the payment is a private pension, State Pension or government-service pension. UK property income normally remains taxable in the UK, while other income may be allocated differently or relieved through a credit or exemption.

Argentine tax residence and the immigration category shown on your DNI are separate questions. Do not assume a temporary immigration status prevents Argentine tax residence.

Get coordinated advice from a UK adviser familiar with treaty claims and an Argentine accountant before relying on gross pension payments, foreign-tax credits or a residence position.

Self-Assessment After Moving

If you have UK income sources (rental income, self-employment in the UK, investments), you'll continue to need to file UK Self Assessment tax returns as a non-resident. The process is the same, but you'll use the "residency" pages (SA109) to declare your non-resident status and claim treaty relief if applicable.

Register for a paper SA109 if you file online. the online system doesn't support the non-resident residency pages.

Worth reading next

• HMRC Form P85 Explained: What British Expats Moving to Argentina Actually File
• The Statutory Residence Test: When HMRC Considers You Non-Resident After Moving to Argentina
• Banking in Argentina as a UK Expat: Opening Accounts and Moving Money