Residence New Rules From 6TH APRIL

The Statutory Residence Test comes into effect on 6th April.

For non UK residents and those planning to be non resident now is the time to plan for the new regime.

The new rules are summarised as follows:

You are automatically UK resident if:

1. If you spend more than 183 days or more in the UK  or

2. You have a home in the UK for at least 90 days, you are present in that home for at least 30 separate days and while you have that home, there is a period of 91 consecutive days when you have no home overseas or have one or more homes overseas but you are not present in them for more than 30 days in a tax year.

You are automatically non UK resident if:

1. You have been non-UK resident for each of the previous three tax years and you are present in the UK for less than 46 days in the year in question or;

2.  You have been non-UK resident for one of the previous three tax years and you are present in the UK for less than 16 days in the year in question or;

3. You leave the UK to carry out full time work abroad with no significant break from overseas work, you are present in the UK for less than 91 days in the tax year and work no more than 30 days in the UK in the tax year.

If you don’t meet any of the automatic overseas tests or any of the  automatic UK tests, residence will be determined by the Sufficient Ties Tests. This examines your ties to the UK in the following area:

Family

Accommodation

Work

Number of days spent in the UK

More on the Sufficient Ties Test to follow next week.

You might also be interested in...