Ordinary residence before 6 April 2013
Produced in partnership with Simon Goldring (Solicitor/ADIT/CTA/ATT (Fellow) TEP) and Ben Harle (Solicitor) of Trowers & Hamlins LLP
Ordinary residence before 6 April 2013

The following Private Client guidance note Produced in partnership with Simon Goldring (Solicitor/ADIT/CTA/ATT (Fellow) TEP) and Ben Harle (Solicitor) of Trowers & Hamlins LLP provides comprehensive and up to date legal information covering:

  • Ordinary residence before 6 April 2013
  • The position before 6 April 2013
  • What is ordinary residence?
  • Regular and habitual abode
  • Settled purpose
  • Voluntarily adopted
  • Relationship with residence
  • Savings measures

This Practice Note was originally drafted by Simon Goldring and Ben Harle but is now maintained by Lexis®PSL Private Client.

Prior to 6 April 2013, the concept of ordinary residence applied as a distinct concept from residence and domicile for UK tax purposes. There was no statutory definition for ordinary residence and its meaning was taken from its usual meaning and from case law. In short, an individual was ordinarily resident in the UK if their residence in the UK was typical and not casual.

The concept of ordinary residence was removed by Finance Act 2013 (FA 2013) and replaced with references to residence with effect from 6 April 2013 as part of the Government’s initiative to simplify tax rules and reduce uncertainty. See the Abolition of ordinary residence from 6 April 2013 and transitional rules to 5 April 2016 Practice Note for further details.

However, the government has included savings measures to ensure that those who have benefited from the concept of ordinary residence do not lose out immediately following the abolition of the concept of ordinary residence. Ordinary residence therefore continues to apply to certain individuals who were resident in the UK for the tax year 2012/13 but who were not ordinarily resident in the UK on 5 April 2013.

These changes, together with the introduction of a statutory residence test, provide much needed clarity and