Chapter 35 - Statutory Residence Rules

Question 1

What are the three sections of the SRT?

Answer 1

1. The automatic overseas test
2. The automatic UK test
3. The sufficient ties test

Question 2

Under the automatic overseas test, an individual is a non-resident in the UK if:

Answer 2

1. They were resident in the UK in one of more of the previous 3 tax years & are present in the UK fewer than 16 days
2. They were not resident at all in previous 3 tax years and are present fewer than 46 days
3. They work abroad for an average of 35 h/pw & are present in the UK for fewer than 91 days of which fewer than 31 are spent working

Question 3

Under the automatic UK test, an individual will be a UK resident if:

Answer 3

1. They were present in the UK for 183 days or more
2. They have a UK home
3. They work full-time in the UK

Question 4

The UK home test will be met where:

Answer 4

1. There is a period of at least 91 consecutive days of which at least 30 fall in the tax year when;
2. The individual has a UK home in which they spend at least 30 days in the tax year & either;
3. Have no home overseas or
4. They have a home overseas but they use it on fewer than 30 days in the tax year

Question 5

Define what is meant by a ‘home’

Answer 5

A place which the individual uses with a degree of permanent stability

Question 6

An individual will be classed as working full-time in the UK if;

Answer 6

1. They work on average 35 hours or more per week in the over over a continuous 365 period
2. During the 365 days there is no significant break
3. More than 75% of the working days are carried on in the UK
4. At least one working day in the UK falls in both 365 days & tax year

Question 7

Define what is meant by a ‘working day’

Answer 7

Any day on which more than 3 hours of work is carried out

Question 8

List the 5 sufficient ties

Answer 8

1. Family
2. Accommodation
3. Work - 40 or more workdays in the tax year
4. UK presence - more than 90 days in the UK in either of previous 2 tax years
5. Country - more days in the UK than anywhere else

Question 9

How many ties are needed for 16-45 days in the UK (where previous resident)?

Answer 9

At least 4

Question 10

How many ties are needed for 46-90 days in the UK (where previous resident)?

Answer 10

At least 3

Question 11

How many ties are needed for 91-120 days in the UK (where previous resident)?

Answer 11

At least 2

Question 12

How many ties are needed for over 120 days in the UK (where previous resident)?

Answer 12

At least 1

Question 13

How many ties are needed for 46-90 days in the UK (where NOT previous resident)?

Answer 13

All 4

Question 14

How many ties are needed for 91-120 days in the UK (where NOT previous resident)?

Answer 14

At least 3

Question 15

How many ties are needed for over 120 days in the UK (where NOT previous resident)?

Answer 15

At least 2

Question 16

True or false

An individual is treated as being in the UK if they are in the UK at midnight

Answer 16

True - this means the day of departure will not be counted

Question 17

When does the split year treatment apply?

Answer 17

When an individual comes to the UK or leaves part way through a tax year

Question 18

What is case 1?

Answer 18

Starting full time work overseas

Question 19

What is case 2?

Answer 19

The partner of someone staring full-time work overseas

Question 20

What is case 3?

Answer 20

Ceasing to have a home in the UK

Question 21

What is case 4?

Answer 21

Starting to have a home in the UK only

Question 22

What is case 5?

Answer 22

Starting full-time work in the UK

Question 23

What is case 6?

Answer 23

Ceasing full-time work overseas

Question 24

What is case 7?

Answer 24

The partner of someone ceasing full-time work overseas

Question 25

What is case 8?

Answer 25

Starting to have a home in the UK