The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Residence is an important tax concept as it determines whether an individual is liable to UK income tax, capital gains tax and inheritance tax. Residence must be decided on a year-by-year basis.
Until 2013/14, the statutory definition of residence was very brief. In order to determine someone’s residence status it was necessary to consult the extensive case law on the subject and heavy reliance was placed on guidance published by HMRC. Although the individual is entitled to rely on the HMRC guidance if he falls clearly within it, several cases (most notably the Gaines-Cooper case), highlighted the short-comings of this guidance and left some individuals in an uncertain position.
It is against this background that a consultation into a potential statutory residence test was published in 2011. Due to the problems which were highlighted as part of the consultation process, the test was not legislated until 6 April 2013.
This guidance note provides an overview of:
Taxpayers who are resident in the UK are taxable on their worldwide income and gains.
There is an exception for UK residents who are not domiciled in the UK. They have the right to use the remittance basis for foreign income and gains.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login