Statutory residence test legislation

The SRT allows you to work out your residence status for a tax year. An individual who, in accordance with the statutory residence test , is resident (or not resident ) in the UK “for” a tax year is taken for the purposes of any enactment relating to relevant tax. The test allows you to work out your residence status for a tax. The statutory residence test 13.

Introduction: Contents.

Crime, justice and the law Disabled people. However, some parts of the new test remain uncertain, most notably in the crucial question of where you have your home. With the statutory residence test , people now have to be very careful that a few extra days in the UK does not change their residence status from one year to the next. It is necessary to keep detailed records, not just of days in the UK, but also the number of hours spent working. An individual’s residence status for UK tax is determined using the statutory residence test (SRT).

The SRT flowchart is designed to assist individuals in determining their residence status. The legislation and guidance is lengthy and the flowchart and notes can only give a brief summary of the key points. There are two layers to the SRT: i.

The automatic residence test. Details of the Section. Sufficient UK ties. Interpretation of enactments.

This imposes a statutory residence test via Schedule 4 with provision for amendment by statutory instrument. This legislation enables an individual to conclusively determine their residence position. An individual may be regarded as resident for part of a tax year but the split-year rules are complex and anyone leaving or coming to the UK part way through a tax year should. It applies for income tax, capital gains tax, inheritance tax and corporation tax (to the extent that the residence status of individuals is relevant to the latter two taxes).

If neither of those tests is met for that year,. Statutory residence test. The first automatic UK test is that P spends at.

A person, who according to the test is resident for the year, will be deemed to be resident for the whole year, unless split-year treatment applies. The basic rule is that a person is resident in the UK for a tax year if the automatic residence or the sufficient ties tests are met for that year. However, the vast majority of individuals will be unaffected by the introduction of the.

Free Practical Law trialTo access this resource, for a free trial of Practical Law. You are attempting to documents. The test brings some much needed certainty to this area however it is difficult to apply an objective standard to an area as inherently subjective as residence.

On looking at the draft law and discussing real situations we are coming across a number of practical issues for those people with UK connections. The legislation provides, through a series of tests, a definitive determination of an individual’s residence status in the UK. The Ask scope and rules apply.

Anonymous (Private practice)Related ContentQ:We are having debates here about how the test could apply to a situation we are advising on. Determining an individual’s correct UK tax residence status can help ensure they pay the correct amount of tax in the UK. If your status is defined as tax residence of the UK, this could mean your worldwide income is subject to UK tax.

To prevent the change in the definition of when section 579CA applies affecting people who had become non-resident before the statutory residence test came into effect, paragraph 1of Schedule 45. The draft legislation is subject to consultation.