The UK Residence Test - What you need to know

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The UK Residence Test - What you need to know

Post by Rock Private Office on Wed Jun 26, 2013 7:12 am

The UK Residence Test - What you need to know

No, not the citizen test, that's the one your 'Johny foreigner' other half may need to pass to prove that he/she is worthy of living in the UK, if you ever want to settle there together (I got a massive 7 out of 14!). No, I'm talking about the one that decides whether you reside in the UK according to Her Majesty's tax man.

If you are a Brit and you have been living overseas for some years, it is important to consider the impact of the revised residence test and plan accordingly.

The statutory residence test came into effect on 6th April 2013 and  determines whether you are considered resident or not by HMRC. 

Broadly speaking it is applied as follows:

Non-resident is applied if you have been overseas for the past three years and visited the UK fewer than 46 days; or if resident in one or more of the previous three years you spent fewer than 16 days in the UK; or you are working abroad full-time with fewer than 90 days (and fewer than 20 of those working) in the UK.

Resident applies if you are present in the UK for more than 183 days a tax year; or your only ‘home’ is in the UK; or you work there full-time.

A third test is applied if the previous two tests are inconclusive. A number of connecting factors are considered together with the number of days you have been present in the UK. The factors include whether family is present in the UK; whether accessible accommodation is available in the UK; if there is substantive work in the UK; and previous UK presence.

Beware, in practice it can be a little more complex. There are definitions for ‘work day’, 'substansive employment', ‘home’ etc. .
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Rock Private Office
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