The statutory residence test—key concepts and definitions
Produced in partnership with Lisa Spearman of Mercer & Hole
The statutory residence test—key concepts and definitions

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

  • The statutory residence test—key concepts and definitions
  • Days spent
  • Exceptional circumstances
  • Transit
  • Deemed days
  • Home and accommodation
  • Home
  • Accommodation tie
  • Work
  • Location of work
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STOP PRESS: On 9 April 2020, a letter from the Chancellor to the Chair of the Treasury Select Committee was published, which outlined a proposed temporary change to the statutory residence test so that any period(s) between 1 March and 1 June 2020 spent in the UK by individuals working on coronavirus-related activities will not count towards the UK residence tests. The qualifying criteria will therefore be designed so that the relaxation of the rules is tightly targeted and supports only those people whose skill-sets are currently required, minimising the risk of abuse.

Further details on the eligibility and scope of this temporary relaxation will be provided and this change will be included in Finance Bill 2020.

Since 6 April 2013, the statutory residence test (SRT) is the test used to determine if an individual is UK tax resident for tax years 2013/14 onwards.

As noted in: The structure of the statutory residence test, determining an individual’s tax residency position under the SRT is, at most, a three-stage process.

The procedure is:

  1. firstly, to consider whether the individual spent 183 days or more in the UK in the tax year (the first automatic UK test); if they did, the individual will be UK resident—otherwise, proceed to the second stage

  2. secondly, to consider whether any of the automatic overseas tests are satisfied; if so, the individual is not UK

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