Statutory Residence Test – latest position as at 1 January 2013

A Statutory Residence Test (the SRT) will be introduced from 6 April 2013. Further draft legislation was published on 11 December 2012 with a guidance note to this legislation also published on 18 December 2012. Whilst there are some small points that may need clarification the legislation is not likely to change dramatically from here.

In essence, the new rules are broadly in line with the initial draft legislation published in June 2012; however, there are some changes, including:

  • An individual claiming to be working full time abroad must not work in the UK for more than 30 days to retain his non-UK resident status.  Previously the cap was 20 days.
  • An individual can spend up to 30 days in the UK in the home of someone else (who is not a relative) without it being treated as his home for the purposes of the automatic residence test.
  • An individual working full time in the UK for more than nine months will not become automatically UK resident.
  • For the purpose of establishing whether an individual has a ‘family tie’ with the UK, time spent with a minor child will be ignored if an individual sees his child in person for fewer than 61 days in the tax year concerned.
  • For the purpose of establishing the ‘accommodation tie’ the home of a close relative will be ignored provided the individual spends less than 16 nights there during the tax year.

For a detailed explanation of all the rules, you can download Paul Bramall and Priya Dutta’s Statutory Residence Test – rules as at 1 January 2013 here.