Ordinary residence - issues on coming to the UK up to 5 April 2013

By Tolley
Personal_tax_img4

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

  • Ordinary residence - issues on coming to the UK up to 5 April 2013
  • Introduction
  • Types of individuals
  • HMRC guidance on new arrivals
  • Test 1 - actually stays in the UK for three years or more
  • Test 2 - intends to come to UK for three years or more
  • Test 3 - regular visits averaging more than 90 days a year
  • Test 4 - accommodation
  • Students

Introduction

Ordinary residence was abolished from 6 April 2013. There are transitional provisions for up to three years for those who are not ordinarily resident in the UK and are adversely affected by the changes. You need to consider this when advising on this subject.

This guidance note considers the application of the ordinary residence to people coming to the UK in the tax years up to 5 April 2013.

The tax rules on UK ordinary residence are explained in the Ordinary residence - years to 5 April 2013 guidance note, and it is recommended that you read that note first. The transitional rules are discussed in the Ordinary residence - transitional rules (2013/14 to 2015/16) guidance note.

The position for those leaving the UK before 6 April 2013 can be found in the Ordinary residence - issues on leaving the UK up to 5 April 2013 guidance note.

You may also find the Residence - issues on coming to the UK up to 5 April 2013 and Domicile guidance notes useful.

Types of individuals
Those returning to the UK

If the individual previously lived in the UK, the earlier period(s) of time spent here may need to be considered as part of the picture when assessing ordinary residence.

Visitors

Short-term visitors will not normally be UK resident. However, habitual visits to the UK may be sufficient for an individual to acquire UK ordinary residence. A visitor who stays for a long time may also become ordinarily resident.

Students

Special rules apply to students, and these are discussed at the end of this note.

More on Coming to the UK: