I have dealt with OWR for a number of clients, but I am a bit stuck on the wording of the legislation on this one. Situation is as follows, client is US domicile
2013/2014 - client was a student in the UK and was in UK for more than 183 days during the year
2014/2015 - client was a student in the UK and was in the UK for 150 days during the tax year
2015/2016 - not in the UK at all
2016/2017 - not in the UK at all
February 2018 client moves to UK, but spends 60% of their time working overseas. Is on a UK payroll paid into an offshore account
Now, this make 2017/2018 his first year for OWR, but as he was resident in UK for 2014/2015 under SRT this would mean he is not eligible as it was one of the preceeding 3 tax years.
However, I am unclear on this part of the legisaltion :-
2. During the tax year if:
· you’re not domiciled in the UK throughout the year
· you’re taxed on the remittance basis
· your duties of employment are carried out wholly or partly outside the UK, and that year is either:
· the first tax year immediately after 3 consecutive tax years you weren’t resident in the UK
· one of the next 2 tax years after such a year
6. Your UK residence status will be determined under the Statutory Residence Test. Where an individual is regarded as UK resident for a year under the SRT but, under a tax treaty, regarded as treaty resident in another country that does not override or change their UK residence status. The legislation at section 6(2) Taxation (International & Other Provisions) (TIOPA) 2010 explains the impact of Double Taxation Agreements on income tax.
So, as he wasn't UK resident in the year 2017/2018, this would give 3 clear tax years, would this mean he can claim OWR for 2018/2019 and 2019/2020?
Thank you in advance