The following Personal Tax guidance note Produced 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.
The statutory residence test applies from 6 April 2013. The test applies for income tax, capital gains tax and inheritance tax, but not for national insurance purposes. All existing law, case law and guidance are superseded for tax years following the introduction of the test.
This guidance note considers the rules in place for determining residence up to and including the 2012/13 tax year. For details of the statutory residence test, see the Determining residence status (2013/14 onwards) guidance note.
This guidance note refers to ordinary residence as a key factor in understanding an individual’s liability to UK tax. This is only the case up to 5 April 2013 as this concept was removed from the statute from this date for tax purposes (subject to transitional provisions). For more on the transitional provisions, see the Ordinary residence ― transitional rules (2013/14 to 2015/16) guidance note.
In relation to the 2012/13 tax year and prior tax years, residence is one of three key factors you should consider when deciding whether, or to what extent, an individual is liable to tax in the UK. The others are ordinary residence and domicile.
As noted above, residence refers to the individual’s tax status on a year-by-year basis, ordinary residence looks at the position over the longer-term, and domicile is the place which a person regards as his true home. See the Ordinary residence ― years to 5 April 2013 and Domicile guidance notes for more detail.
Of course it is possible for a person to be r
**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
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
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.