Tax Residence

The residence of an individual, Trust or company is important for determining whether or not a liability to tax arises in the UK. A statutory residence test (SRT), was introduced for individuals for the 2013-14 tax year onwards.

The SRT is used to determine whether an individual is resident in the UK for Income Tax and Capital Gains Tax.

The introduction of the SRT means that the question of whether an individual is tax resident in the UK is no longer such a grey area. In order to determine an individual’s residence status a series of Automatic UK or Automatic Overseas tests outlined in the legislation must be applied. These tests specify a number of alternative limits to the days you can spend in the UK depending upon whether or not you were resident in the UK for one of the previous three tax years, if you work full time in the UK or overseas or if you have a home in the UK.

In certain circumstances it is necessary to consider how many ties an individual has to the UK and the number of days he or she spent in the UK in a tax year; ties for these purposes can include:

  • a family tie
  • an accommodation tie
  • a work tie, and
  • a 90 day tie
  • a country tie

We have extensive expertise in helping individuals plan to become UK resident or non-UK resident and dealing with HMRC into UK tax residency enquiries.

If you would like to discuss you tax residence in more detail then please contact us to speak with someone on a free and confidential basis.