Do I pay UK tax on foreign income?

If UK resident, yes - on worldwide income. Non-doms may use remittance basis.

What about tax paid abroad?

You can usually claim double tax relief as a credit against UK tax.

How do I report foreign income?

On your Self Assessment tax return - you may need the foreign pages (SA106).

What if theres no tax treaty?

You may still get unilateral relief for foreign tax paid, but its more complex.

Are foreign pensions taxed?

Usually yes - UK residents pay UK tax on foreign pensions with relief for any foreign tax.

General2026/27

What is Foreign Income? UK Definition 2026/27

Written by Waqas Sagar ACA, FCCA, FMAAT

•

Verified by ICAEW, ACCA & AAT

•Updated April 2026

Quick Answer

Income from outside the UK that may be taxable depending on your residence status.

Definition of Foreign Income

Foreign income includes employment income from working abroad, overseas rental income, foreign pensions, interest from foreign banks, and dividends from foreign companies. UK residents are generally taxed on worldwide income. Non-domiciled residents may use the remittance basis. Double tax treaties prevent being taxed twice on the same income.

Foreign Income — Key Facts for 2026/27

UK residents	Taxed on worldwide income
Non-dom option	Remittance basis
Double taxation	Treaties prevent
Reporting	Self Assessment required

How Foreign Income Works — Example

Foreign income taxation

1UK resident, UK domiciled
2UK salary: £50,000
3US dividends: £5,000
4US tax withheld: £750 (15%)
5UK tax on dividends: £1,312 (at 33.75%)
6Double tax relief: £750 credit
7UK tax payable: £562

How Foreign Income Affects Your Tax

Foreign income adds complexity to your tax affairs but double tax treaties usually prevent paying tax twice. Keep records of foreign tax paid to claim relief. Non-doms have additional planning options.

Official HMRC Guidance on Foreign Income

For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.

HMRC: Tax on foreign income

Frequently Asked Questions about Foreign Income

Related Tax Terms

Domicile

Your permanent home country for tax purposes, affecting how overseas income is taxed.

Accuracy Note

This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.