• Non Residency

HMRC have brought a new ‘Statutory Residence Test’ (SRT) with effect from 6 April 2013.

This is a very technical area and each case needs to be considered on its own merits. However in brief the new SRT breaks down into the following parts :-

The Automatic Overseas Tests

• The 16 day test
• The 46 day test
• The sufficient hours work abroad test (employed or self employed)

The Automatic UK Residence Test

• The 183 day test
• The UK home/91 day test
• The sufficient hours in the UK test

The Sufficient Ties Test

• Where the automatic tests above do not provide the answer these tests weigh up the concerning factors to produce an answer:-

Ties

  • Family tie:  Having a UK resident family
  • Work tie:  Substantive employment/self employment, 40 days or more
  • Accommodation tie:  accessible accommodation
  • 90 day tie: more than 90 days in UK in one or both previous two tax years
  • Country tie:   (leavers only) spending more time in UK than any other single country

Arrivers Test – (not resident in UK in all of last 3 tax years)

  • If in UK for less than 46 days, non-resident
  • 46-90 days, UK resident if 4 factors
  • 91-120 days, resident if 3 factors
  • 121-182 days, resident if 2 factors
  • 183+ days, always resident

Leavers Test – (resident in one or more of previous 3 tax years)

  • If in UK less than 16 days, non-resident
  • 16-45 days, resident if 4 factors
  • 46-90 days, resident if 3 factors
  • 91-120 days, resident if 2 factors
  • 121-182 days, resident if 1 factor
  • 183+ days, always resident
Our Service

As you can see from the brief summary of rules noted above the area is very complex. We have specialist staff who can advise you on your scenario given the facts. We always consider the facts provided and look to find the most tax efficient ways of managing your affairs within the guidelines and legislation. We will provide you with a fixed price service so you can budget ahead.