The New Statutory Residence Test for Individuals: A Practical Guide

This book provides tax practitioners of all levels with a comprehensive consideration of the new Statutory Residence Test (SRT), its application and the potential difficulties that may be encountered in moving through the transitional phase. The SRT became effective on April 6, 2013. Henceforth, an individual's residence status for UK tax purposes is determined by legislation and not, as pre April 6, 2013 by a mixture of case law, HMRC practice and Extra Statutory Concessions. Dangers abound under the SRT. For example, simply staying one night in the UK with a non-close relative may precipitate an accommodation tie; a 90 days tie may occur in a tax year without in fact having spent 90 days in the UK in that tax year; and losing residence by working full-time overseas is now much more complex. Topics covered in the book include: * domicile and SRT interaction; * split tax years; * anti-avoidance and the SRT; * implications of ordinary residence abolition; * death and the SRT; and * record keeping. Despite a two year consultation period, ambiguities and a lack of clarity unfortunately still subsist in the Financial Act 2013 legislation which will over time, hopefully, be removed and/or clarified. In the meantime, practitioners will have to do the best they can for their clients. This book provides practitioners with an overall detailed analysis of the new rules combined with numerous practical examples which help to demystify and explain the recent changes. Overview and key concepts; Automatic overseas tests: non-UK residence; Automatic UK tests: UK residence; Sufficient ties test: UK residence; Residence in the year of death; Split year; Anti-avoidance; Ordinary residence; Domicile and the SRT; Record keeping; The Law of Domicile