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The Statutory Residence Test

From 6 April 2013 an individual will be UK resident if the automatic overseas test is not met, and meets the automatic residence test or if there are sufficient ties with the UK.  The details of these ties are as follows:

Automatic overseas residence

If any of the following apply:

  • If you are resident in one of the three preceding tax years and spend fewer than 16 days in the UK in the tax year in question;
  • If you are not resident in one of the three preceding tax years and spend fewer than 46 days in the UK in the tax year in question;
  • If you work full-time overseas and you spend fewer than 91 days in the UK and you work in the UK for fewer than 31 days.

Automatic UK residence

If any of the following apply:

  • If you spend 183 days in the UK;
  • If you have a home in the UK for more than 90 days, you are present at that home for at least 30 days, and there is a period of more than 91 consecutive days when you have no other home anywhere fulfilling these requirements;
  • If you work full-time in the UK and 75% of the days you work are days on which you do more than 3 hours work in the UK.

Sufficient ties

The ties taken into consideration are:

  • UK resident dependent family;
  • accommodation available;
  • work in the UK for more than 3 hours for more than 40 days a year;
  • have spent more than 90 days in the UK in either of the preceding two tax years;
  • whether more time is spent in the UK than elsewhere.

Having determined the number of ties, those persons who have been resident for at least one of the three preceding tax years will remain UK resident according to the following table:

Days spent in the UK in the year in question

Number of ties needed

16 – 45

46 – 90

91 – 120

121+

At least 4

At least 3

At least 2

At least 1

For persons who have not been resident in any of the three preceding tax years, UK residence is achieved according to the following table.

Note that the time spent in the UK tie is ignored for this purpose.

Days spent in the UK in the year in question

Number of ties needed

46 – 90

91 – 120

121+

All 4

At least 3

At least 2

This brief note is based on the Legislation and Finance Act (2) 2013 and is subject to change.  It is intended as a brief summation of the key points only.  No action should be taken or refrained from in reliance on this document but specific advice should be sought from your usual contact at Saffron Tax Partners LLP.