10.02 – UK tax residence

From the 6 April 2013 UK tax residency will be determined by the Statutory Residence Test. The Statutory Residence Test determines who is resident and who is not resident in the UK for tax purposes. This is achieved by applying some fact-based tests that take account of time spent in the UK, whether an individual has their only home in the UK, whether they work full time in the UK and their connections to the UK.

In general, individuals that spend more than half of the year in the UK are likely to be UK tax residents.

There is a guidance note on the Statutory Residence Test RDR3 and also an online tool, the Tax Residence Indicator, on the HMRC website. Individuals can use this tool to check their UK residence status.

Anyone with more complex affairs should also refer HMRC’s guidance note on Residence, Domicile and the Remittance Basis RDR1 and the residence pages of the website or consult their Tax Advisor.