Home or Away – UK Statutory Residence Test
HM Treasury has published a Consultative Document on the possible statutory definition of residence. A further document was issued on the same day regarding proposals to reform taxation of non-UK domiciled residents. The proposed new Statutory Residence Test classifies migrant individuals as “arrivers” (those who have recently come to the UK), “leavers” (who have recently left the UK) or “full time workers abroad”. Only those spending fewer than ten days per year are guaranteed non-resident status, regardless of other factors. Those who spend more than 183 days in the UK, or whose sole residence is in the UK, will be counted as conclusively resident. Individuals deemed to have just arrived in the UK – who have been non-resident in each of the preceding three tax years – and who have spent less than 45 days in the UK in the current tax year, will also be treated as conclusively non-resident. If these tests fail to decide, a third test will be applied that balances day counts against “connecting factors” in the UK, such as family, employment and accessible accommodation. A link to the SRT consultation document can be found here and a link to the consultation document on the taxation of non-domiciled individuals can be found here. The closing date for responses for both consultations is 9 September 2011.