Residence ― Arrivers in the UK

By Tolley in association with Oliver Heslop
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The following Employment Tax guidance note by Tolley in association with Oliver Heslop provides comprehensive and up to date tax information covering:

  • Residence ― Arrivers in the UK
  • The Statutory residence test
  • Automatically non-resident?
  • Automatically resident?
  • Sufficient Ties Test
  • Additional rules

The Statutory residence test

The Statutory residence test (SRT) introduced major changes to the UK tax residence rules. With effect from 5 April 2013 objective tests apply to determine a person’s UK tax residence. Prior to this, the non-statutory UK tax residence position was set out by HMRC guidance HMRC6 . This guidance note deals with the status of Arrivers to the UK and focuses upon common tax scenarios. There is no legal definition of an Arriver but this term is commonly used by HMRC to mean someone arriving in the UK has not got a recent history of UK residence, including international assignees who are short or medium term visitors to the UK who do not intend to settle permanently.

FA 2013, Sch 45; HMRC guidance notes RDR3 
Automatically non-resident?

When a person arrives in the UK, you must first test whether he is automatically non-resident (FA 2013, Sch 45, paras 11-16 automatic overseas test). When an Arriver is automatically non-resident, he cannot also be tax resident. Flowchart 1 summarises the principal parts of the test:

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Fewer than 46 or fewer than 16 days test

From 2013/14 onwards, you must first check if an Arriver has been tax resident in any of the past three tax years (for 2018/19 the years to look at are 2015/16, 2016/17 and 2017/18).

FA 2013, Sch 45, paras 12 and 13

If he has not been UK resident in any of those tax years, he is allowed to spend fewer than 46 days in the UK in the tax year and still remain automatically non-resident. If he was resident in any of the previous three tax years, the maximum permitted number of UK days in the tax year reduces to 16. A ‘day spent in

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