When did the statutory residence test come in?

6 April 2013
The SRT came into effect on 6 April 2013. For information about the full test, read RDRM11000 onwards. The test allows you to work out your residence status for a tax year. Each tax year is looked at separately, so you may be resident in the UK in one year but not the next, or vice versa.

Is split year treatment optional?

Before even considering the split year rules, a taxpayer needs to follow the rules as set out in FA 2013, Sch 45 (see leaflet RDR3) to establish whether she is UK resident for a given tax year. The split year treatment is no longer optional (as it was before 6 April 2013), and it doesn’t have to be claimed.

What is a significant break from overseas work?

An individual will have a significant break from overseas work if at least 31 days go by and not one of those days is a day on which they: work for more than 3 hours overseas. would have worked for more than 3 hours overseas, but they did not do so because they are on annual, sick or parenting leave.

When did I become a UK resident?

You’re automatically resident if either: you spent 183 or more days in the UK in the tax year. your only home was in the UK – you must have owned, rented or lived in it for at least 91 days in total – and you spent at least 30 days there in the tax year.

Am I still a UK resident if I live abroad?

You can live abroad and still be a UK resident for tax, for example if you visit the UK for more than 183 days in a tax year. You usually have to pay tax on your income from outside the UK as well.

What is the 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.

What is the 183-day rule?

The so-called 183-day rule serves as a ruler and is the most simple guideline for determining tax residency. It basically states, that if a person spends more than half of the year (183 days) in a single country, then this person will become a tax resident of that country.

Who is eligible for split year treatment?

You may qualify for split year treatment in the tax year in which you start to have your only home in the UK, provided you did not have sufficient UK ties to make you UK resident for the part of the tax year before the day you on which you meet the only home test.

What is a significant break?

A significant break in coverage is a lapse in health coverage of 63 days or more. For example, instead of 63 days, a state may allow someone to have a break of 120 days between periods of health coverage. …

How many days can you work outside the UK?

183 days
In most cases, what this means is that provided that you spend no more than 183 days in the other country and you work for a UK-resident employer who bears the cost of your employment, you would usually continue to be taxed only in the UK and not in the other country.

How long can a non resident stay in the UK?

Expats can become non resident in the UK by living for 183 days or more in another country as a tax resident there. This is known as the 183 day tax rule. Once you are considered a non resident for tax purposes in the UK, you can still visit the UK without losing your non-resident tax status.

What is the 183 day rule?

When was the statutory residence test introduced in the UK?

Information about the Statutory Residence Test (SRT), introduced for tax years 2013 to 2014 onwards. Read the guidance note to find out about the SRT introduced in Finance Act 2013. It explains how HMRC interprets the legislation in the context of applying the SRT to your circumstances.

How does the statutory residence test ( SRT ) work?

Find out about the Statutory Residence Test (SRT) and how it may apply to your circumstances. 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.

What is the current rule for Statutory Residence?

The current rule is that you are resident or not for the whole of the UK tax year, and this will continue to be the case under the new statutory residence test. By concession HMRC will treat an individual as UK resident for part of the year only in certain circumstances.

How is a person’s residence determined in the UK?

From 2013/14 onwards, residence in the United Kingdom for tax purposes will be decided in accordance with the statutory test. Where a person’s residence status in an earlier year is relevant in deciding his residence under the new rules, the rules in force in the earlier year will apply.