The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
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 their 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 (also known as the SRT), 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.
There were a number of changes to the statutory residence test that were introduced by FA 2020 due to the coronavirus (COVID-19) pandemic. These are discussed in context below and in the other statutory residence test guidance notes, but for a discussion of all the changes introduced, see the FA 2020 ― changes to the statutory residence test [updated] news item.
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.
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