Accounting, Non-Residents

(NON-UK) RESIDENCY TESTS

In order to determine your residency for UK tax purposes, it is necessary to go through a few steps:

STEP 1 – First Automatic UK Test

Did you spend 183 or more days in the UK in the tax year in question?
If YES, you are a UK resident for tax purposes.
If NO, continue to STEP 2.

STEP 2 – First Automatic Overseas Test

Were you resident in the UK for 1 or more of the 3 tax years preceding the tax year being considered AND did you spend fewer than 16 days in the UK in the tax year?
If YES, you are a non-UK resident for tax purposes.
If NO, consider STEP 3.

STEP 3 – Second Automatic Overseas Test

Were you resident in the UK for NONE of the 3 tax years preceding the tax year being considered AND did you spend fewer than 46 days in the UK in the tax year?
If YES, you are a non-UK resident for tax purposes.
If NO, consider STEP 4.

STEP 4 – Third Automatic Overseas Test

Did you work full time overseas over the tax year without any significan breaks AND did you spend fewer than 91 days in the UK in the tax year being considered AND if work is done in the UK, were the number of days worked in the UK for more than 3 hours less than 31?
If YES, you are a non-UK resident for tax purposes.
If NO, continue to STEP 5.

STEP 5 – Second Automatic UK Test

5i – Did you have a home in the UK for at least 91 consecutive days out of which at least 30 days fell within the tax year?
If YES, continue to 5ii.
If NO, continue to STEP 6.

5ii – Was there any period of at least 91 consecutive days, 30 of which fell in the tax year, when you had a UK home AND No overseas home?
If YES, you are considered a UK Resident for that tax year.
If NO, continue to STEP 5iii.

5iii – Was there any period of at least 91 consecutive days, 30 of which fell in the tax year, when you had a UK home AND an overseas home in which you were not present for at least 30 days in the tax year?
If YES, you are considered a UK Resident for that tax year.
If NO, continue to STEP 5iv.

5iv – Were you present in the overseas home for 30 or more days within that tax year?
If YES, continue to STEP 6.
If NO, continue to STEP 5v.

5v – Was there any period of at least 91 consecutive days, 30 of which fell in the tax year, when you had a UK home AND a combination of No overseas home or an overseas home in which you were not present for at least 30 days in the tax year?
If YES, you are considered a UK Resident for that tax year.
If NO, continue to STEP 6.

STEP 6 – Third Automatic UK Test

Did you work full time in the UK for any period of 365 days with no significant break from UK work AND:
– all or part of that 365-day period falls within the tax year
– more than 75% of the total days when you worked more than 3 hours per day happened in the UK
– of the work days falling within both the 365-day period and the tax year, a minimum of one day must have been for more than 3 hours of work in the UK?
If YES, you are considered a UK Resident for that tax year.
If NO, continue to STEP 7.

STEP 7 – Sufficient Ties Test

7i – Were you resident in the UK for any of the 3 tax years before the tax year in question?
If YES, continue to 7ii.
If NO, continue to STEP 8.

7ii – Did you have the prescribed combination of country, family, accommodation, work or 90-day ties?
If YES, you are considered a UK Resident for that tax year.
If NO, you are considered a Non UK Resident for that tax year.

STEP 8 – Sufficient Ties Test (Nil previous tax residency)

Did you have the prescribed combination of family, accommodation, work or 90-day ties?
If YES, you are considered a UK Resident for that tax year.
If NO, you are considered a Non UK Resident for that tax year.

NOTE – The above is a general summary so do not fully rely on my notes for your situation. Get in touch for assistance.

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About Phoenix

Accountant and Home Educator

Discussion

One thought on “(NON-UK) RESIDENCY TESTS

  1. This info is great but it highlights that it isn’t straightforward. If we live half the year in the UK and half in Ireland where do we stand? I need to do more research….

    Posted by Life with The Meades | July 7, 2016, 5:00 pm

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