Determining residence status (2013/14 onwards)

By Tolley
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The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Determining residence status (2013/14 onwards)
  • Overview of the statutory residence test
  • Automatic overseas test
  • Automatic UK tests
  • Sufficient ties test
  • Transitional rules
  • People with a relevant job (ie international transport workers)

Residence is one of the key factors you should consider when deciding whether, or to what extent, an individual is liable to tax in the UK. The other key factor is domicile.

Residence refers to the individual’s tax status on a year by year basis and domicile is the place which a person regards as his true home. See the Domicile guidance note.

Note that in the tax years 2013/14 to 2015/16, you may also need to consider the individual’s ordinary residence status. Although the concept was abolished with effect from 6 April 2013, there are transitional provisions which might impact the tax position in tax years 2013/14 to 2015/16. See the Ordinary residence ― transitional rules (2013/14 to 2015/16) guidance note.

This guidance note explains the statutory residence test, which applies from 6 April 2013. It applies for income tax, capital gains tax, inheritance tax and corporation tax (to the extent that the residence status of individuals is relevant to the latter two taxes). The statutory residence test is not used for national insurance purposes.

For the implications of residence status on UK taxation, see the Residence ― overview guidance note.

If the individual comes to the UK or leaves the UK but is classed as resident in that tax year under the statutory residence test, it may be possible to split the tax year into periods of UK residence and non-residence. For a discussion of split year treatment, see the Residence ― issues on coming to the UK (2013/14 onwards) and Residence ― issues on leaving the UK (2013/14 onwards) guidance notes.

Residence is also discussed in detail in Simon’s Taxes Division E6.1 (subscription sensitive). You may also find Tolley’s Statutory Residence Test useful.

Overview of the statutory residence test

The statutory residence test is a three part test: an automatic non-residence test

More on Residence, remittance etc: