Residency

Question 1

UK resident

Answer 1

an individual is a uk resident for the tax year if they meet either the ‘automatic resident test’ or the ‘sufficient ties test’

Question 2

Domicile country

Answer 2

• one where the individual has their permanent home
• domicile origin is given at birth
• at aged 16 and individual may change their domicile country

Question 3

‘non-dom’ charge for uk residence

Answer 3

• loose PA
• £60,000 if resident for 12/previous 14 years
• £30,000 if resident for 7/previous 9 years
• still liable for tax on income in the uk

Question 4

Double taxation relief

Answer 4

• if an individual pays overseas tax on income they may be liable for relief In the uk
• tax credit is given on the lower of:
  1. the foreign tax suffered
  2. uk tax due on overseas income

Question 5

Order of test in determining residency

Answer 5

1. automatic overseas tests
2. any of the uk automatic test
3. sufficient ties test