UK and International Tax news

HMRC Guidance And the Statutory Residence Test

Monday 20th May 2013

Legislation introduced in the 2013 Finance Bill has put the rules which determine an individual’s tax residence on to a statutory basis. HMRC has recently published updated guidance to help taxpayers to decide if they are resident in the UK for tax purposes.  In addition it has also issued updated guidance on the the eligibility for overseas workday relief.

The main guidance notes include 45 examples which work through the application of, in particular, the three automatic overseas tests, the three automatic UK tests, the sufficient ties test, split year treatment, and temporary periods of non residence.

 HMRC has also announced that it is to launch an on-line residence indicator which is to assist in providing an indication of a person’s residence status after answering a few straightforward questions, such as how many days have been spent in the UK, whether a home is available and if the person has family ties. The first version will be a pilot version.

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