Common Expat Tax Mistakes That Could Cost You as a Brit Living in Singapore

By Will Price

Singapore offers an attractive lifestyle and low tax rates, but that doesn’t mean British expats can forget about His Majesty’s Revenue and Customs (HMRC).  The UK’s tax rules for non-residents are complex, and even small misunderstandings can lead to unnecessary tax or missed opportunities.

Below are some of the most frequent mistakes we see and how to avoid them.

1. Assuming You’ve Automatically Cut Ties with the UK

Simply moving abroad doesn’t mean you’re no longer a UK tax resident.  The Statutory Residence Test looks at a combination of days spent in the UK and personal ties such as family, accommodation, and work.  Many expats remain within HMRC’s reach without realising it.

It’s important to review your residency status every year to avoid unpleasant surprises.

2. Overlooking the Tax on UK Property Income and Gains

If you rent out your UK property, that income stays taxable in the UK.  You must register under the Non-Resident Landlord Scheme and may owe capital gains tax when selling. Ownership structure, timing, and reliefs can make a big difference to your final position.

Professional guidance can help ensure the property is held and sold in the most tax-efficient way.

3. Drawing UK Pensions Without Applying the Treaty Rules

Under the UK–Singapore Double Tax Treaty, pension income is generally taxable only in Singapore.  Yet many expats still have UK tax deducted at source because HMRC hasn’t applied the correct “no tax” (NT) code. Getting that back later can take months.

Before taking pension income, make sure the right paperwork and structures are in place.

4. Misunderstanding the Impact of the UK Long-Term Residence (LTR) Rules After Leaving the UK

From April 2025, the UK replaced its old domicile-based and remittance-basis systems with a new regime focused on long-term residence.  For those leaving the UK, the key risk is how long HMRC continues to view you as within reach.

If you’ve been UK resident for at least ten years before departing, you remain within the UK inheritance-tax net for another ten years after leaving.  During that period, your worldwide estate can still attract UK IHT.  Careful structuring before departure such as using international life policies, trusts, or corporate vehicles can help manage this exposure.

The timing of when and how you break UK residence now determines how far the UK tax tail follows you.

5. Overlooking Currency Management and Cross-Border Reporting

Currency management:

Living in Singapore often means holding assets across multiple currencies.  Yet few expats actively manage currency exposure.  Shifts in exchange rates can alter portfolio performance and the value of repatriated funds, particularly if you later return to the UK.  Maintaining a clear strategy for currency diversification and reviewing it regularly can help protect long-term purchasing power.

Cross-border reporting:

Separately, it’s vital to remain compliant under the Common Reporting Standard (CRS).  Banks and investment platforms in Singapore automatically share account details with HMRC and other tax authorities. Expats who have not declared all accounts or income sources can find themselves exposed.  Ensuring accurate disclosure and record-keeping across jurisdictions helps prevent unpleasant correspondence from HMRC later.

6. Waiting Too Long to Seek Advice

The biggest mistake is assuming you can sort it all out later. Once residency or reporting errors occur, fixing them can be slow and costly. Annual reviews and forward planning around LTR, pensions, and estate exposure can save a great deal of trouble later.

Final Thoughts

Singapore is a fantastic base for British expats, but the UK tax system still has a long reach.  With the new long-term residence rules now in force, understanding how your UK ties and assets interact with Singapore’s tax regime is more important than ever.

If you’d like an independent review of your position, or to explore how the new rules affect your estate, speak to our team at GFC.  We specialise in helping British expats structure their finances sensibly across borders.