The Statutory Residence Test
The rules that determine if someone is resident in the UK for tax purposes, known as the Statutory Resident Test (SRT) changed from 6 April 2013. Historically, residence in the UK was determined by being in the UK in excess of 182 days in any tax year (6th April to 5th April) or by being resident in the UK for an average of 91 days in any tax year, taking the average of the tax year in question and the three previous tax years.
The SRT consists of the three separate tests which are intended to provide greater certainty as to a taxpayer’s residency status. For the majority of taxpayers it will be clear whether or not they are resident in the UK. However, for taxpayers with complex circumstances the SRT will provide more clarity as to their residency status in the UK.
The three tests which comprise the SRT are as follows:
- An automatic non-residence test.
- An automatic residence test.
- A ‘sufficient ties’ test.
HMRC have recently published a revised copy of their guidance note on the SRT. The guidance runs to over 100 pages.