Income from Ukraine and UK tax: what you need to know

Step 1: are you UK tax resident?

Residence is worked out each tax year (6 April to 5 April) under the Statutory Residence Test. You are automatically UK resident if, for example, you spend 183 days or more in the UK in the tax year, or your only home is in the UK for at least 91 days in a row and you stay there for at least 30 days of the year.

When you arrive part way through a year, split-year treatment can mean you are only taxed as a UK resident from your arrival date. Your status can change from year to year, so it is worth checking every year.

Step 2: what UK residents must report

UK residents are normally taxed on their worldwide income. That usually includes income from Ukraine such as:

• Rent from a flat or house in Ukraine
• Interest on Ukrainian bank accounts
• Dividends from Ukrainian companies
• Profits from work or a business carried on in Ukraine
• Gains when you sell property or shares abroad

The 4-year foreign income and gains regime

Since 6 April 2025, people who become UK resident after at least 10 years of non-residence can claim relief on eligible foreign income and gains for up to their first 4 tax years of UK residence. You claim it on your Self Assessment return and can choose which income to include.

Timing matters. If your 4-year period started before 6 April 2025, you can only use the years that remain from 2025/26 onwards. Someone who became resident in 2022 has just one eligible year, 2025/26. Claiming also means losing your tax-free Personal Allowance and Capital Gains Tax allowance for that year, so it is not always worth it.

Avoiding tax twice: the UK and Ukraine treaty

The UK and Ukraine have a double taxation convention in force. If income is taxed in Ukraine and also taxable in the UK, you can usually claim Foreign Tax Credit Relief so you do not pay twice on the same income. Where tax has not yet been taken in Ukraine, a UK certificate of residence can help you claim treaty relief there.

What to do next

• Check your residence status for each tax year since you arrived
• List every source of income and any assets in Ukraine
• Keep records of Ukrainian tax paid, in hryvnia and pounds
• Register for Self Assessment by 5 October after the tax year you need to report
• File and pay by 31 January to avoid penalties