UK Statutory Residence Test

For most individuals, determining where you are tax resident is straightforward as where you live most of the time usually resolves the issue. But for some who have a less settled lifestyle, as either internationally mobile or a perpetual traveller, the position is more complex.

Determining whether UK tax residence applies to you will usually involve consideration of the Statutory Residence Test. And there is also the possibility that a Double Tax Treaty might displace UK tax residence in favour of tax residence in another country.

Under the Statutory Residence Test, there are rules for both Automatic Overseas Tax Residence and Automatic UK Tax Residence and if neither of these determines your position, then there is the Sufficient Ties Test which takes into consideration the number of connections you have to the UK. In all cases, date of entry to the UK will become very important.

Whilst for most individuals the Statutory Residence Test will determine whether UK tax residence applies to you, for those with more complex financial affairs or those seeking to remain not UK resident for tax purposes, the relevance of the intricacies and ambiguities in the Statutory Residence Test in comparison to your circumstances will need careful examination.

As Ritchie Phillips specialise in private client taxation, you can rely on us to get to the heart of your UK tax residence status, which in turn will allow you to make strategic decisions in relation to your financial affairs.