this I suspect is what Cerbus is talking about...
Ties that bind the new statutory residence test
20th March 2013
A victory for HMRC which brought into the UK tax net the worldwide assets of a Seychelle-based billionaire has led to the creation of a robust new test of residence for taxpayers. Where do you fit in?
Ties that bind the new statutory residence test
A victory for HMRC which brought into the UK tax net the worldwide assets of a Seychelle-based billionaire has led to the creation of a robust new test of residence for taxpayers.
The non-resident status of Robert Gaines-Cooper was successfully challenged at judicial review and in the House of Lords by HMRC, against its own guidelines, with the finding that he was indeed a UK resident.
The new test considers the amount of time you spend in the UK again your ties in the country, defined as:
UK residence being treated as UK resident in any one of the three tax years preceding the year in question;
Family having a husband, wife or civil partner who is resident in the UK and they are not separated. That also applies if that person lives with a spouse or civil partner who is a UK resident, or has a child under 18 who is resident in the UK (and he or she sees the child in the UK for more than 61 days).
Accommodation accommodation which is available to them for a continuous period of at least 91 days during the tax year and which the individual uses for at least one night during the tax year;
Work doing more than three hours work in the UK for at least 40 days in the tax year ;
Time in UK spending more than 90 days in the UK in either or both of the previous two tax years.
Country tie spending more days in the UK than any other country during the tax year.
The number of days spent in the UK is a critical part of the test, and we have outlined below how HMRC will assess residence in line with ties (it is important to note that there are distinct rules for those who take up full time work abroad):
Days in the UK - Resident here ?
Fewer than 15 - Not resident in the UK
16 to 45 - Resident here if you have 4 or more ties
46 to 90 - Resident here if you have 3 or more ties
91 to 120 - Resident here if you have 2 or more ties
120 to 182 - Resident here if you have 1 or more ties
Over 183 - Automatically UK resident
Its important to note this is only a very brief summary of the key rules, and detailed review for individual cases should be considered before any action is taken. It is expected that this test will give certainty for around 90% of taxpayers for whom residence is an issue.
The guidance on the HMRC website is very comprehensive, and it's also refreshingly unambiguous, the devil however is also in the detail, but there is AS EVER lots of wiggle room
