The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
A person’s liability to UK tax is determined by his residence and domicile status. From 6 April 2013, a person’s residence is determined using the statutory residence test. See the Determining residence status (2013/14 onwards) guidance note. For details of domicile and why it is important for UK tax purposes, see the Domicile guidance note.
Although residence is usually determined for the tax year as a whole, it may be possible to split the year into periods of UK residence and non-residence if the person comes to the UK or leaves the UK and meets certain conditions.
Since 6 April 2013 split year treatment for residence status has been codified. Previously the treatment was available by the application of extra-statutory concessions and these concessions have been replicated as closely as possible in the legislation.
It is possible to split the tax year into periods of residence and non-residence if the individual is resident in the UK in that tax year (using the statutory residence test) and his circumstances fall within one of eight ‘Cases’:
Case 1 ― loses UK residence by virtue of working abroad
Case 2 ― the partner joins the individual overseas where the individual satisfies Case 1
Case 3 ― leaves the UK and no longer has a home in the UK
Case 4 ― starts to have a home in the UK and has no home overseas
Case 5 ― starts to work in the UK
Case 6 ― comes to the UK after ceasing work abroad
Case 7 ― accompanies a partner who satisfies Case 6
Case 8 ― starts to have a home in the UK, which continues throughout the following tax year
FA 2013, Sch 45, Part 3, paras 44–51
Split year treatment is not relevant for those who are not resident in the UK under the statutory residence test. Instead the individual will be not resident for the whole tax year of arrival or departure.
**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
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.