Posted by Nick Day on 27 Feb 2013
With effect from 6 April 2013, your UK tax residence status will be determined using a new statutory test.
These new rules replace a tangled web of guidelines, concessions, practices (and the odd bit of law!) which dictated how tax residence was previously determined.
If you are currently a non-resident expat or you will be leaving the UK and trying to establish non-residence over the coming weeks/months, it is important to review the new rules and determine the impact they will have on you.
The new test has three parts:
Part A – factors that will conclusively determine when someone is not resident for UK tax purposes.
Part B – factors that will conclusively determine when someone is resident for UK tax purposes.
Part C – will apply only to those with more complex affairs who cannot conclusively determine their status under Part A and Part B, using various connections with the UK to measure the position. These “connecting factors” are then referenced against the amount of time spent in the UK to determine whether UK tax residence exists.
If you are or hope to become a non-resident for UK tax purposes we would urge you to review your status as soon as possible and ensure you do not lose the advantages that non-residence brings.
Our team has well in excess of 30 years of experience advising on UK tax residence/domicile issues. Please click here for a more detailed summary of the changes to the UK tax residence rules.
If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org
The following is a list of our most recent expat related articles:
- Property Partnership Incorporation and SDLT
- Overseas Pension Changes 6 April 2017
- Overseas Workday Relief (OWR) – Relief for non-UK business travel
- Top 10 tax tips for expats moving to the UK
- Deemed UK Domicile Reforms 2017