Guidance on UK Tax Residency by a UK Chartered Accountant and Chartered Tax Adviser.
Tax residence is a key issue in determining the scope of your income and capital gains subject to UK tax.
The Statutory Residence Test (“SRT”) applies from April 2013 and aims to provide a comprehensive method of clearly establishing when an individual will (and won’t) be UK resident.
Before April 2013 determining your residence status mainly depended on applying HMRC practice and various court decisions to your own circumstances.
Nevertheless, the Statutory Residence rules are not necessarily straightforward to apply. In this guide we provide detailed guidance as to how the new rules apply and the tax planning opportunities available.
Some of the key topics covered include:
- How to maximise your days in the UK without being UK resident
- How to take advantage of the specific exemptions provided in the SRT
- Detailed analysis of UK accommodation and its importance under the SRT
- When you can and can’t have a UK home
- Avoiding UK ties under the “Substantial Ties” test
- Tax planning for anyone working overseas or in the UK under the SRT
- The impact of overseas homes under the SRT
- How to establish your main home as overseas
- How to structure visits back to the UK tax efficiently
- How the new “exceptional days” provisions work
- Changes arising from the COVID-19 pandemic
- When you can qualify for the split year basis
- How the split year basis applies to fiscal nomads
- How to avoid being caught by the new “deemed days” provisions
- Fiscal nomads and the establishing non residence under the SRT
- When and how to use the SRT in earlier years
- Why your spouse’s residence can have a big impact on your tax residence
- Using a UK double tax treaty to work in the UK free of UK income tax
- And much more…
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