Uk Statutory Residence Test

Uk Statutory Residence Test. The Statutory Residence Test is the process that determines the UK tax residence status of individuals with connections to the UK whether they live in the UK or not It was introduced by HMRC on April 6th 2013 The Statutory Residence Test while complex is vital when it comes to understanding your UK tax residence status as being defined as a tax residence of the UK could mean that your worldwide income is subject to UK tax and failure to correctly declare and pay tax on any income could.

Automatic Overseas TestsAutomatic UK TestsSufficient Ties TestSplit Year TreatmentRecord KeepingDefining TermsApplying The Srt in PracticeThere are five tests under this heading if any one of these is met an individual will be regarded as not resident in the UK in the tax year In most circumstances the three key tests are 1 The individual spends fewer than 16 days in the UK and was UK resident in one or more of the three preceding tax years 2 The individual spends fewer than 46 days in the UK and was not UK resident in any of the three preceding tax years 3 The individual works sufficient hours overseas (broadly equivalent to working fulltime overseas) with only limited visits to and workdays in the UK The remaining two tests cover the position where an individual dies during the year and are not considered further here If an individual does not meet any of the automatic overseas tests then the four automatic UK tests must be considered As the name suggests if any one of these tests is met the individual will be regarded as UK resident for the tax year 1 The individual spends at least 183 days in the UK in the tax year (in practice this is the very first test to consider as meeting it means that it is impossible to meet any of the automatic overseas tests) 2 The individual has a home in the UK which is available for a period of 91 consecutive days or more (at least 30 of which must fall within the tax year) and that home is actually used for at least 30 days in the tax year and they either have no overseas home(s) or if they do they spend fewer than 30 days in any overseas home in the tax year (the ‘30 day test’) 3 The individual works fulltime in the UK for any 365day period part of which falls in the tax year (with no significant breaks and subject to various conditions) Test If the above two tests do not provide a conclusive answer then the sufficient ties test is used to determine residence status This test requires a taxpayer to consider the number of ties they have with the UK their UK residence status in the previous three years and the number of days they spend in the UK There are a total of five ties as follows 1 Family tieApplies if spouse civil partner cohabiting partner or minor child is UK resident Exemptions for minor children who are UK resident only because they are in fulltime education and who spend limited amounts of time in the UK outside of term time 2 Accommodation tieApplies if there is accommodation available in the UK for a continuous period of at least 91 days in the year and the individual spends at least one night in that accommodation Accommodation at the home of a close relative can be ignored if the individual spends fewer than 16 nights there per UK tax year 3 Work tieApplies if the individual works in the An individual is generally speaking either UK resident for a whole tax year or not However where an individual arrives in or leaves the UK part way through a tax year split year treatment may apply Where split year treatment applies a portion of the year will be designated an ‘overseas part’ for which the individual will be taxed as a nonUK resident Detailed conditions apply both to determine whether split year treatment applies and if so to determine the length of the relevant periods The complexity of the rules notwithstanding the UK tax system requires residence status to be selfassessed It is therefore important that individuals maintain records to support their selfassessment should HMRC ever question their residence status What constitutes appropriate records will vary from case to case but could include evidence of travel to and from the UK records supporting particular working times and locations and records showing how a particular property has been occupied Looking at some of the main concepts in a little more detail highlights some of the potential areas of complexity 1 UK days exceptional circumstances A maximum of 60 days in a particular UK tax year can be excluded from the calculation of UK days if they are spent here due to ‘exceptional circumstances’ Examples could include an inability to travel owing to sudden illness or to the introduction of restrictions on international travel for example in relation to Covid19 Each case must be considered on its facts and with reference to HMRC’s published guidance on the SRT Accordingly professional advice should be taken before seeking to rely on the exclusion 2 Fulltime work in the UK or overseas for the automatic tests Broadly an individual is considered to work fulltime if they meet the ‘sufficient hours test’ which generally means that they work 35 hours a week on average over the course of a 365day period without any ‘significant break’ You can only be deemed to w Although the SRT can provide a clear (and straightforward) answer on UK tax residence the SRT rules are complex and many terms are specifically defined each individual should therefore ensure that they consider the detailed rules in light of their specific circumstances and ensure that they take appropriate professional advice This factsheet is intended only as a summary of the relevant rules which are complex and professional advice should be taken before relying on this It is based on law and HMRC guidance at 1 February 2021 DOWNLOAD PDF DOWNLOAD RUSSIAN PDF.

Statutory residence test GOV.UK

The Statutory Residence Test (SRT) was introduced to categorically assess an individual’s tax residence status in the UK Tom Elliott Partner Head of London Private Clients 07/12/2020.

Statutory Residence Test Flowchart KPMG

Read the guidance to find out about the Statutory Residence Test ( SRT) introduced in Finance Act 2013 The SRT allows you to work out your residence status for a tax year The guide explains how 1 Statutory Residence Test (SRT)The SRT came into effect on.

Statutory Residence Test Crowe UK

The statutory residence test will determine if an individual is resident in the UK or not for tax purposes However the vast majority of individuals will be unaffected by the introduction of the File Size 706KBPage Count 96.