Australian Tax for Australians and Founders Living in the UK
- Extax Oceania
- Jul 28
- 3 min read
Direct answer: an Australian who moves to or already lives in the United Kingdom can face different Australian and UK residence dates, different tax years and simultaneous personal and company issues. The UK statutory residence test, split-year rules and sufficient-ties analysis must be reconciled with Australia’s residence tests, CGT event I1, founder remuneration, company control, payroll and permanent-establishment exposure.
What changes for an Australian already living in the UK
The UK statutory residence test applies automatic overseas tests, automatic UK tests and, where necessary, sufficient-ties tests.
UK residence is assessed for the UK tax year, while Australian residence is tested under separate rules and may change on a different date.
UK split-year treatment applies only in specified cases. It is not a general election and does not split the Australian income year.
If Australian residence ceased, CGT event I1 may affect founder shares, options and other assets. If it did not cease when assumed, prior worldwide-income and foreign-tax-credit positions may need review.
An Australian founder or team working from the UK may create UK company residence, a permanent establishment, payroll or employment obligations for the Australian business.
Founder and company decision matrix
1. When did Australian residence end, if at all?
The review reconstructs the Australian home, family, assets, employment and business role, intended duration abroad, UK home and return pattern. The date affects worldwide income, CGT event I1, foreign-tax credits and the treatment of later receipts and transactions.
2. When did UK residence begin?
The UK statutory residence test begins with day counts but also examines homes, full-time work and ties. A person may be UK resident with fewer than 183 days or non-resident despite substantial presence where an automatic overseas test applies. The exact tax year and split-year facts matter.
3. Where is company control exercised?
A UK company is generally UK resident by incorporation. A foreign company can also be UK resident where central management and control is exercised in the UK. Strategic decisions, board authority, product and finance control, senior appointments and major contracts should be mapped across both countries.
4. Does earlier advice need to be revisited?
A client already in the UK may have lodged returns in both countries without a coordinated residence, CGT, company-control or treaty analysis. Extax can reconstruct the timeline, test prior conclusions and identify whether returns, elections, payroll or governance need correction.
Worked scenario: the founder is already in London
An Australian founder moved to London in September, kept an Australian home available and continues to direct an Australian technology company. A UK subsidiary handles sales and hiring, while the Australian company retains IP and product staff. Separate Australian and UK accountants have prepared annual filings but have not reconciled the residence dates or operating model.
The founder’s Australian and UK residence dates must be determined separately. CGT event I1 and founder equity require review. The Australian company may face UK residence or permanent-establishment questions if strategic control or contracting moved to London. The UK subsidiary’s employment, sales and service arrangements with Australia require defensible transfer pricing and governance.
Evidence to assemble
Travel history, UK immigration status, homes and work pattern
Australian housing, family, assets, professional roles and return pattern
Founder shares, options, valuations and transactions since departure
Australian and UK returns, split-year analysis and written advice already received
Group chart, board minutes, delegations and signing authorities
Employment, customer, IP, funding and intercompany agreements
Primary sources
Frequently asked questions
Can Extax review my position after I have already moved to the UK?
Yes. The work can reconstruct both residence timelines, review prior Australian positions and coordinate UK input where required. It is not limited to clients planning a future departure.
Is 183 days the only UK residence test?
No. It is one automatic UK test. Homes, work, automatic overseas tests and sufficient ties can produce a different result.
Does UK split-year treatment also split the Australian tax year?
No. UK split-year treatment operates under UK law. Australia applies its own residence and income-year rules, so the two timelines must be reconciled.
Review an existing or proposed UK position
Extax can review an arrangement already operating from the UK or a proposed move, including Australian residence, CGT event I1, UK residence and split-year treatment, treaty relief, company control, permanent establishments, payroll and transfer pricing.
Extax Oceania
Ex Big 4 | International Tax
Published 28 July 2026. Technically updated 28 July 2026.
Extax leads or coordinates the Australian tax analysis. UK legal, regulatory and tax advice must be provided or confirmed by appropriately qualified UK advisers. This page is general information only.
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