1. Domicile & Residence

Question 1

What is the difference between residence and domicile?

Answer 1

Residence: status as living in a particular country in a tax year

Domicile: country regarded as permanent home

Question 2

What are the 4 main parts to the Statutory Residence Test?

Answer 2

1. Spending 183+ days in UK = UK resident
2. Automatic overseas tests
3. Automatic UK tests
4. Sufficient ties

Question 3

What are the 4 automatic overseas tests?

Answer 3

Not UK resident if any apply:
1. Spend <16 days in UK
2. Not UK res in previous 3yrs and spend <46 days in UK
3. Work full time overseas, spend <91 days in UK of which <31 working days
4. Die having spent <46 days in UK and not res in previous 2 years

Question 4

What are the 2 automatic UK tests to determine residency?

Answer 4

UK resident if either:

1.
a) have a home in UK for >90 days
b) present for 30+ days
c) for 91+ consecutive days either no home overseas or spend <30 days at overseas home

2. Work full time in UK 365+ days with no significant breaks

Question 5

What are the 3 family ties for UK residency?

Answer 5

If any are UK residents:
Spouse
Co-habiting partner
Minor child - excl students or if not seen for >60 days

Question 6

What is the accommodation tie for UK residency? (3)

Answer 6

Available for 91+ consecutive days
Ignoring gaps of <16 days
Spend one night there (or 16 if close relative’s home)

Question 7

What is the work tie for UK residency?

Answer 7

Work for >3 hours a day for 40+ days

Question 8

What is the 90 day tie for UK residency?

Answer 8

Spent >90 days in the UK in either of previous 2 years

Question 9

What is the country tie for UK residency?

Answer 9

The UK is the country where the greatest number of days are spent

Question 10

How many ties are required for residency?

Answer 10

Days spent in UK No. ties req
a) b)
16-45 4+ N/A
46-90 3+ 4+
91-120 2+ 3+
121-182 1+ 2+

a) applies if resident in 1+ of 3 previous years
b) applies if not resident in any of 3 previous years

Question 11

What is the criterion for deemed domicile and how can it be lost?

Answer 11

Deemed UK Dom if been resident for 15+ of past 20 tax years

Can be lost if you leave the UK for 6+ years (income and CGT) or 4+ years (IHT)

Question 12

What is the charge to use the remittance basis? (3)

Answer 12

£30k if resident for 7/9 previous yrs

£60k if resident for 12/14 previous yrs

Exempt if <18 or <£2k unremitted overseas income/gain