Near Pezenas. you? Ah it's all changing in April too under the Finance Bill - have you seen this? It looks at whether you still have a home in the UK, family ties and whether you were historically UK resident.
HMRC has issued new guidance relating to the Statutory Residence Test that will come into force on 6 April 2013 and has provided a further update on the new basis for the "Split Year Concession" and "Overseas Workday Relief"
HM Revenue and Customs has now provided further information regarding the legislation to be introduced in Finance Bill 2013 which will determine an individual’s tax residence on a statutory basis. The new test will come into force from 6 April 2013.
Broadly, you will either be “automatically” resident or non resident if you meet certain conditions. If you fail to meet those conditions, a “special” test is applied to determine status.
You will be “automatically” non resident if you meet one of the following tests:
- You were resident in the UK in one or more of the three preceding tax years and you spend fewer than 16 days in the UK in the tax year
- You were resident in the UK for none of the three preceding tax years and spend fewer than 46 days in the UK in the tax year
- You work “full time” overseas without any “significant breaks” from your overseas position, and
- You spend fewer than 91 days in the UK during the tax year; and
- The number of days in the tax year in which you work for more than three hours is fewer than 31
You will be “automatically” resident in the UK if you meet one of the following tests:
- You spend 183 days or more in the UK in the tax year
- You have a home in the UK for a period of more than 90 days and:
- You are present in that home on at least 30 separate days (individual or consecutive) during the tax year
- While you have that UK home, there is a period of 91 consecutive days (some of which falls into the tax year in question) when:
- You have no home overseas, or
- You have one or more homes overseas and were not present in any for more than 30 days during the tax year
If you do not meet either test, you will need to use the “sufficient ties” test to determine your tax residence status for a particular year. The test examines your connections to the UK based on:
-
Family
- broadly, you will have a family tie if either your partner (including husband, wife or civil partner, unless separated) or children under 18 are resident in the UK (certain cases where children are in the UK, e.g. at boarding school may not count)
-
Accommodation
- you have a place to live in the UK (including a holiday home) and it is available for a continuous period of 91 days or more in the year, and you spend at least one night there (or 16 or more nights if the home belongs to a close relative). Gaps of 15 days or fewer will count towards the continuous period of availability.
-
Work
- You do more than three hours work a day in the UK for an aggregate of 40 or more days in the year
-
90 day tie
- You will have a 90 day tie if you spent more than 90 days in the UK in either or both of the previous two tax years
-
Country tie
- You will have a country tie if you spent more midnights in the UK than any other country during the tax year
The impact of the ties on the number of days you can spend in the UK without being treated as UK tax resident is as follows:
A: UK Ties needed if you were UK resident for one or more of the three tax years before the tax year under consideration
Days spent in the UK in the tax year under consideration |
UK ties needed |
16 - 45 |
At least 4 |
46 - 90 |
At least 3 |
91 - 120 |
At least 2 |
Over 120 |
At least 1 |