by Dr Clifford Frank
For many Grenadians who have spent years living, studying, or working in the United Kingdom, returning home is a moment of pride and fulfilment.
Yet for those who still have strong UK ties, such as property, pensions, or medical routines, the transition can bring unexpected complications.
A common misconception is that moving back or spending most of the year outside Britain automatically makes you “non-resident” for tax and healthcare purposes. In reality, the rules are more complex, and small mistakes can lead to costly surprises.
Understanding the UK’s Statutory Residence Test (SRT)
The UK determines tax residency through a framework called the Statutory Residence Test (SRT). This test considers 3 main elements:
- Day-count rules: Spending 183 days or more in the UK during a tax year makes you automatically resident. Spending fewer days does not guarantee non-residence, since other ties still matter
- Ties to the UK: Family members, available accommodation, substantive work, and past UK residency all count. The more ties you have, the fewer days you can spend in the UK without being classed as resident again
- Automatic overseas tests: Some people working full-time abroad (at least 35 hours per week) and spending under 91 days in the UK may qualify as non-resident, but this does not apply automatically to retirees or those with flexible arrangements
Misunderstanding these details is common. Keeping a family home in Britain or travelling back for regular healthcare can unintentionally re-establish UK residency, even if you live most of the year in Grenada.
Healthcare residency and NHS access
Many Grenadians assume they can continue using the National Health Service (NHS) as before. However, NHS access is based on being “ordinarily resident,” which means living lawfully and habitually in the UK. If you claim non-residence for tax purposes but still use the NHS, it can raise red flags. Non-residents may be charged for treatment, and repeated usage can prompt a review of your tax status. Even small habits such as keeping a UK GP, collecting repeat prescriptions, or scheduling annual check-ups can suggest ongoing UK ties. Aligning your healthcare behaviour with your declared residency is essential.
Inheritance Tax changes from April 2025
From April 2025, the UK will introduce major reforms to its Inheritance Tax (IHT) regime. Under the new rules, individuals previously domiciled in the UK may face UK IHT on worldwide assets, not only those based in Britain.
For Grenadians with longstanding UK links, such as a domicile of origin or regular visits, this could mean assets in Grenada remain subject to UK taxation. To avoid surprises, review your domicile position, seek updated guidance, and take steps to establish Grenadian domicile where appropriate.
Practical steps to protect your status
- Review your ties: List all UK connections, such as property, family, bank accounts, healthcare, and travel patterns
- Limit UK presence: Reduce unnecessary visits and avoid frequent use of UK accommodation
- Update paperwork: Ensure banks, His Majesty’s Revenue and Customs (HMRC), pension providers, and healthcare systems have your Grenadian address
- Document your Grenadian life: Keep evidence of your home, work, community involvement, and healthcare in Grenada
- Do an annual review: Each tax year, confirm that your travel and ties remain within non-resident thresholds
- Seek professional guidance: Before making major financial or lifestyle changes, consult advisors familiar with both jurisdictions
A cautionary example: The James family
After decades in London, the James family returned to Grenada but kept their UK house for holidays, stayed on NHS records, and visited their children at university each term. Although they lived in Grenada most of the year, HMRC later ruled they were still UK-resident for tax purposes. The result was unexpected tax liabilities and NHS charges.
A few careful steps, such as reducing UK visits, deregistering from the NHS, and documenting their new life in Grenada, could have prevented the issue entirely.
Final thoughts
Establishing non-residence is not just about where you live. It requires consistent patterns across your paperwork, habits, and lifestyle. An annual self-check and conscious alignment between your everyday choices and declared status can help safeguard your finances and peace of mind.
Dr Clifford Frank is a Grenadian tax and legal professional with experience in UK and Caribbean cross-border matters. He writes on issues affecting Grenadians living abroad and those returning home. Contact: [email protected] | www.lexfiscal.co.uk
This is a very interesting topic!