The following Private Client guidance note provides comprehensive and up to date legal information covering:
STOP PRESS: In Autumn Statement 2016, the government announced that individuals who draw down on certain pension funds while resident overseas will be taxable in the UK on the drawn down funds if they resume residence within ten years. See: Autumn Statement 2016—Private Client analysis—Foreign pensions.
This Practice Note is based on material originally produced by Tolley.
This Practice Note deals with the application of the residence rules to people leaving the UK after 5 April 2013.
The UK’s first formal tax residency test for individuals known as the statutory residence test (SRT) took effect on 6 April 2013. For information about the SRT see the Residence after 5 April 2013 Practice Note. Before this, whether an individual was tax resident in the UK or not was determined by a combination of limited statutory provisions, case law, practice and HMRC guidance. The residence of an individual before 6 April 2013 must still be determined in accordance with the old rules.
Residence determined in accordance with the SRT depends partly on whether a person is UK resident in the previous three years, so residence in the tax years 2010/11, 2011/12 and/or 2012/13 will be relevant when determining whether an individual is resident from 6 April 2013. Although the old law continues to apply to pre-2013/14 tax years it is possible for an individual to elect
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