Statutory residence test—split year treatment
Produced in partnership with Lisa Spearman of Mercer & Hole and Emma Loveday

The following Private Client practice note produced in partnership with Lisa Spearman of Mercer & Hole and Emma Loveday provides comprehensive and up to date legal information covering:

  • Statutory residence test—split year treatment
  • What is a split year?
  • What happens when a split year applies?
  • When is a split year available?
  • Priority between Cases
  • Effect of the COVID-19 (coronavirus) pandemic
  • Case 1—starting full-time work overseas
  • When does the year split?
  • Case 2—partner of someone starting full-time work overseas
  • When does the year split?
  • More...

Statutory residence test—split year treatment

The UK’s first formal tax residency test for individuals known as the statutory residence test or SRT took effect on 6 April 2013 and applies to determine an individual's tax residency for tax years 2013/14 onwards. Further details are set out in Practice Notes: The structure of the statutory residence test and The statutory residence test—key concepts and definitions.

This Practice Note sets out the way in which the rules apply where a person arrives in or leaves the UK part way through a tax year.

This Practice Note, and the further Practice Notes on the SRT, are only a summary and are not comprehensive. As with any new law, there will inevitably be areas where an interpretation is debatable or where a given situation does not appear to be in the consideration of the draftsmen, so reference should always be made to the primary legislation. Detailed guidance on the legislation has been issued by HMRC and this may be updated from time to time. The current HMRC guidance (SRT Guidance) can be found in RDR3: Statutory Residence Test (SRT) notes and in HMRC’s Residence, Domicile and Remittance Manual at RDRM11000 onwards.

What is a split year?

The general effect of the SRT is that an individual is either resident in the UK, or not resident in the UK, for a complete tax year.

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