Earlier this year HMRC introduced a new statutory residence test, which has been designed to provide greater certainty as to whether or not individuals are UK resident for tax purposes, explains RJP’s Lesley Stalker.
It is a welcome development as many clients have faced years of uncertainty over their residence status. However as with many such initiatives, the rules are unfortunately complex and it may be necessary to obtain professional advice before your residence status can be determined conclusively.
Although the test does not have retrospective effect, it could be the case that someone who has previously been considered to be non UK resident becomes UK resident with effect from 6 April 2013. There are a number of stages to the test and a variety of rules to apply in order to determine status. Of these, the ‘automatic overseas test’ is the first port of call since if you ‘pass’ this test you can conclusively be considered to be non UK resident and you need proceed no further.
The basic rules are...