Statutory residence tests: What you need to know
In December 2012, draft legislation for statutory residence tests was presented, something that was “inevitable” according to barrister Keith Gordon.
Gordon’s new book Residence: The Definition in Practice is based on this legislation and in addition to other analysis of the legislation, helpfully sets out the four statutory residence rules.
Its publisher, Claritax, has provided AccountingWEB with a free downloadable extract of the book’s preface and fourth chapter, which we’ve condensed into the following digest.
“Taxpayers and advisers will need to keep a close eye on the legislation to ensure that claims of non-residence are fully justified in the circumstances,” said Gordon.
There are several scenarios in which an individual is automatically treated as a UK resident, he continued, but non-residence tests always take precedence.
The four scenarios in which someone will automatically be treated as a UK resident are...