PT 47 - Residence - the 'Split Year' Rules Flashcards
A tax year will be split if:
the individual is UK resident for that year and
the circumstances fall within cases 1 - 8
case 1 - splits the year where an individual leave the UK …
in order to start full time work overseas
Where the year is split under case 1 the overseas part of the tax year starts on the day the individual starts to work full time overseas
case 2 splits the year where an individual leaves the UK to…
join their partner while the partner is working full time overseas (and where circumstances fall within case 1)
the overseas part starts on the laterof
- the day the individual joins their partner
- the day the partner starts to work full time overseas
Case 3 splits the year where an individual leaves the UK to…
live abroad. the individual must cease to have any home in the UK at some point in the tax year and return visits to the UK between this point and 5 April must be fewer than 16 days
Where the year is split under case 3 the overseas part of the tax year starts on te day the individual ceases to have a home in the UK
Case 4 splits the year where an individual starts to…
have their only home in the UK. From arrival the individual must have their only hoe in the UK (case 4 does not apply if the individual still has a home overseas)
Where the year is split under case 4 the UK part of the tax year starts on the day the individual has their only home in the UK
Case 5 splits the year where an individual starts…
full time UK work.
Where the year is split under case 5 the UK part of the tax year begins on the day the individual starts to work full time in the UK.
Case 6 splits the year where an individual comes to the UK after…
ceasing full time work overseas. Where the year is split under case 6 the UK part of the tax year will start on the day after the overseas work ceases
Case 7 splits the tax year whre an individual returns to the UK …
with their partner who has ceased working overseas and the circumstances meet case 6.
the Uk part of the year starts on the later of the day they move and the day on which the partner becomes UK resident under case 6
Case 8 splits the year where an individual starts to…
have a home in the UK. Unlike case 4, case 8 applies where an individual comes to the UK and acquires a home in the UK and retains a home overseas.
Where the year is split under case 8 the UK part of the tax year starts on the day the taxpayer starts to have a home in the UK
For taxpayers leaving the UK the priority is…
case 1 then case 2 then case 3
For taxpayers coming to the UK the priority is …
the case which results in the shortest overseas part of the year
