5 - Residence and Domicile Flashcards
Describe the difference between residence and domicile
Residence - status of an individual in any one tax year
Domicile - country that an individual regards as their permanent home
What are the 3 parts to the Statutory Test of Residence?
Automatically not resident in UK
Automatically resident in UK
Sufficient UK ties
Under which 3 circumstances is someone “automatically not resident in UK”?
Been in the UK fewer than 16 days of the tax year
Been in the UK fewer than 46 days of the tax year, and not at all in the last 3 tax years
Works full-time overseas (35+ hours employed or self-employed), as long as they are in the UK less than 91 days of the tax year, and spend fewer than 31 days of the tax year working in the UK (working day defined as a day spent with more than 3 hours working)
Under which 3 circumstances is someone “automatically resident in UK”?
Been in UK 183+ days during the tax year
Has a home in the UK (for at least 91 consecutive days, of which 30 are in the tax year, and be present in it for 30 days too). If they have an overseas home, they must be present in it less than 91 days. The home does not need to be owned by the person being tested
Works full time in UK, 365 days, but not necessarily in the tax year
In which 3 circumstances might someone be given the split-year treatment?
Leaves the UK for full-time work/comes to UK for full-time work
Leaves UK to live overseas (must cease UK home)
Comes to live in UK (must be for full-time work or by meeting UK home test)
What is meant by split-treatment of residence status?
You can be both a resident or non-resident in any given tax year under some circumstances
What are the 5 potential UK ties under the sufficient UK ties test?
Having a spouse, civil partner or minor children resident in UK
Having accomodation in UK that is used during the year (exc. B2L, hotels and short stays with relatives)
Substanstive work in UK (40+ days a tax year)
Spends 90+ days in UK during either of the last 2 tax years
Spending more time in UK than anywhere else
How many “days spent in the UK” can be disregarded in exceptional circumstances, such as birth, death and life-threatening illnesses and/or injury, for the purpose of residency tests?
Up to 60 exceptional days
It is very important that the 3 residency tests are applied in the correct order. What is the order?
Automatically non-resident
Automatically resident
UK ties
In which circumstances will an individual’s residence status be determined according to the sufficient UK ties test?
When it cannot be determined by the automatic tests (which is first the automatic non-resident test, followed by the automatic UK resident test)
At birth, what type of domicle is given?
Domicle of origin
Who’s domicle does a child take when born if there parents are married and both alive?
The father
An individual can acquire a new domicile by moving to a new country with the objective
intention of permanently living there. Which type of domicle is this?
Domicle of choice
In which 2 circumstances can a domicile of choice be abandoned?
Person no longer lives in the place they are domicled in
They intend to live elsewhere permanently
What are the 2 conditions in which someone can be deemed domiciled?
Condition A - born in UK, return to UK after having made a domicile of choice somewhere else, resident in the UK one of the last 2 tax years.
Condition B - resident in UK at least 15 of the last 20 tax years. Deemed domicile starts 16th year.
