British & Nighstopping the UK?
 

HMRC has provided clarification on how days will be "counted" towards the "90 Day Rule".

At present, the day of arrival and the day of departure are exempted from the calculations. Under the draft proposals, any time you set foot outside "airside" you will deemed to have spent a day in the UK.

So, if you are on a UK nightstop (one night in the UK), you will be deemed to have spent 2 days in the UK. If you do this twice a month for 10 months you will accrue 40 days residency. If you then spend your 6 weeks leave in the UK you can add a further 42 days taking you to 82 days of residency. Only a few more nighstops and you will deemed to be resident in the UK and will be liable to tax on your worldwide earnings.

Further details at:

http://www.hmrc.gov.uk/news/index.htm

Read in particular res.dom.explan.notes para 205 et seq. and the FAQs #20 et seq.

There is an opportunity to pass comment on the proposals but do choose the correct e mail address.

Sharman....I believe that the days only count toward the 182 day rule. I think it is ambiguous as to whether it counts for the ninety day average.

FAQ21 (my bold):

<<21) What are the residence rules?

A person who is currently not resident in the UK will always be treated as resident in the UK if they spend 183 days or more in the UK in a tax year. If they visit the UK on a regular basis, and spend, on average, 91 days or more in the UK in a tax year (taken over a period of 4 years) they will be treated as resident in the UK. >>

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