Also known as:
Residence 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 and is usually determined by where the individual lives during the year.
An individual is:
The automatic overseas tests should be considered first, as if the any of these are met an individual cannot be UK resident.
There are five automatic overseas tests, which are that the individual:
(1) was resident in the UK for one or more of the previous three tax years and is present in the UK for fewer than 16 days in the current tax year
(2) was not resident in the UK for all of the previous three tax years and is present in the UK for fewer than 46 days in the current tax year
(3) meets the working abroad test, where the individual works over 35 hours per week averaged over the tax year, has no significant breaks from work of at least 31 continuous days, spends no more than 30 days working in the UK in the tax year and is present in the UK for fewer than 91 days in the tax year
(4) dies in the tax year having spent fewer than 46 days in the UK and was not resident in the UK in both of the two previous tax years
(5) dies in the tax year and would have been treated as meeting the working abroad test if the conditions were modified to take into account the death (and conditions are met as to their residence status in the previous two years)
There are four automatic UK tests, which are that the individual:
(1) is present in the UK for 183 days or more in the tax year
(2) has a ‘home’ in the UK for all or part of the tax year, the individual is present in that UK home for at least 30 days in the tax year and there is at least one period of 91 consecutive days (of which at least 30 fall in the tax year) in which the individual had no home overseas or was present in an overseas home for fewer than 30 days in the tax year
(3) meets the working in the UK test, in which the individual works over 35 hours per week as averaged over a 365 day period (of which at least one day falls in the tax year), has no significant breaks from work and works for more than three hours in the UK for more than 75% of the working days
(4) dies in the tax year, has a home in the UK and was resident in the UK for the previous three tax years (and the immediately preceding year was not a split year)
Under the sufficient ties test, the individual’s connecting factors with the UK must be taken into account along with the number of days spent in the UK in the tax year.
The connecting factors are:
Not UK resident in any of the three preceding tax years (‘arrivers’)
Resident in the UK for one or more of the three preceding tax years (‘leavers’)
Fewer than 16 days
Non-resident
16–45 days
Resident if four or more connecting factors
46–90 days
Resident if four connecting factors
Resident if three or more connecting factors
91–120 days
Resident if two or more connecting factors
121–182 days
Resident if one or more connecting factors
183 days or more
Resident
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