Residence & Domicile

Experts in Personal Taxation, Residence & Domicile


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Statutory Residence Test


The Statutory Residence Test (SRT) was introduced on 6 April 2013


Rather than a simplification of the subject the test arguably sets in legislation the working practice and case law that has been established over many years. It is also designed to make it harder to become not resident and in many cases easier to fall resident in the UK.

The SRT is to applied each year and while it involves a number of sometimes complicated definitions it will at least allow clarity from the 2013/14 tax year forwards.


For those in full-time employment abroad (with no UK duties) it is possible that, in effect, little will change. However it is worth noting that there is now a convoluted statutory definition of what is full time employment. May people who think they are employed as such may be surprised that HM Revenue & Customs do not agree.


For those who are not in full time employment; left the UK recently or are maybe without the protection of a Double Tax Treaty, greater care will be needed. Indeed the number of days that can be spent in the UK may be greatly reduced.

The SRT is designed to separate taxpayers into three categories. While some of the tests and rules are generic they can be applied differently. For example there will now be:


  • Individuals who will be automatically non-resident,
  • Individuals who are automatically resident; and
  • Individuals who do not fall under either of the above tests and will therefore need to consider the connecting factors with the UK along with the number of days spent in the UK.


It should be noted that if you are conclusively not resident (Part A) then you do not need to consider the SRT further. 


Similarly if you are conclusively resident (Part B) then you do not proceed to Part C which measures the ties that someone has with the UK.


What next?

You should not forget that there are statutory definitions of days in the UK, what constitutes a work day, what is treated as accommodation, when accommodation is considered as available as well as how accommodation provided by close relatives is treated differently to that provided by others. 


Indeed it is quite possible that if you are a Leaver you will be treated as not resident for tax purposes from a date sometime after your actual departure from the UK.

Regardless of your circumstances, if you currently consider yourself to be not resident, you are looking to leave the UK or even as an established non resident you visit the UK for pleasure or business purposes you should review your circumstances.


If you require further help with the above or any aspect of your UK tax affairs please do not hesitate to contact us.


We can provide detailed reports and reviews of domicile. as well as advise on how to "achieve" a desired domicile, protect it and how best to benefit from it.


Be aware though that there are disadvantages to being not domiciled. Domicile is vital not only to understanding the liability to Inheritance Tax that your estate may have but also with regard to whether you can benefit from the remittance basis and control your income and capital gains tax liabilities.


There are three types of domicile and you can only be treated as having one of these at any one time.


  • Domicile of Origin
  • Domicile of Dependence
  • Domicile of Choice


While it is possible to establish a Domicile of Choice and indeed lose it, it should not be overlooked that this is an area that regularly troubled the courts and detailed advice should be obtained.

Please contact us to discuss how we can help


MJH Tax Ltd

24 Grafton Road


West Sussex

BN11 1QP

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