A person’s tax residence status is fundamental for determining how he or she will be taxed in the UK. Resident taxpayers are taxed in the UK on their worldwide income, whereas non-residents are taxed on just their UK-sourced income such as:
•interest from UK bank accounts;
•dividends from UK companies;
•rental income from UK properties;
•earnings from work physically performed in the UK while overseas; and
•earnings from a time when still resident and working in the UK, e.g. deferred bonuses, exercise of share options and other employee share awards.