Residence status – Tables Print

The following tables set out the residence status of the individual taking into account the number of days spent in the UK as well as the other connection ties. The greater number of ties the individual has with the UK, the fewer days he will be able to spend here before he will be regarded as resident.

Resident in the UK during any of the three previous tax years

Days spent in UK during the tax year Impact of connection factors on residence status
Fewer than 16 days Always non-resident
16 – 45 days Resident if individual has 4 ties
(otherwise not resident)
46 – 90 days Resident if individual has 3 ties or more (otherwise not resident)
91 – 120 days Resident if individual has 2 ties or more (otherwise not resident)
121 – 182 days Resident if individual has 1 tie or more (otherwise not resident)
183 days or more Always resident

Not Resident in the UK during any of the three previous tax years

Days spent in UK during the tax year Impact of connection factors on residence status
Not more than 45 Always non-resident
46 – 90 days Resident if individual has all 4* ties (otherwise not resident)
91 – 120 days Resident if individual has 3 ties or more (otherwise not resident)
121 – 182 days Resident if individual has 2 ties or more (otherwise not resident)
183 days or more Always resident

* Country tie does not apply for the purpose of this test.

The number of days in the above tables is apportioned where the individual dies before 1st March during the year under review. The adjustment is calculated as the number of days multiplied by the factor A/12 where “A” is the number of whole months in the year after the month in which the individual dies. For this purpose, fractions of ½ or more are rounded up. Where the fraction is less than ½, the figure is rounded down to the nearest whole number.

Various terms are also defined in greater detail, in particular:

Days spent in the UK

If the individual is present in the UK at the end of the day (midnight) then that day counts as a day spent in the UK, unless:

  • The individual arrives in the UK as a passenger on that day; leaves the UK on the next day, and in the intervening period the individual does not engage in activities that are to a substantial extent unrelated to his passage through the UK; or
  • The individual would not be present in the UK at the end of that day but for exceptional circumstances beyond his control that prevent his departure from the UK, and the intention is to leave the UK as soon as those circumstances permit.

Examples given of exceptional circumstances are:

  • National or local emergencies such as war, civil unrest or natural disasters, and
  • A sudden or life-threatening illness or injury.

In either of the above cases the maximum number of days that may apply to the exceptional circumstances is limited to 60, whether in respect of the same, or different circumstances. Any days in excess of this will count as days spent in the UK.

If the individual is not present in the UK at the end of a day (midnight), that day does not count as a day of residence subject to the deeming provision below.

Deemed Days spent in the UK

A deemed day in the UK is defined as applying for a tax year where the individual:Has at least 3 UK ties for the tax year, and

 

  • Is present in the UK on more than 30 days, without being present at the end of that day. These are called qualifying days.
  • Has been resident in the UK in one or more of the 3 preceding tax years.
  • If all of the above conditions are met, then under the deeming rule the number of qualifying days in excess of 30 is treated as days of residence for the purposes of the day count.

The deeming rule does not apply in determining whether an individual has at least 3 UK ties, and for these purposes the number of deemed days in excess of 30 are not treated as days spent in the UK.

Home

A home may be a building, or part of a building, a vehicle, vessel, or structure of any kind. In Guidance Note RDR3, HMRC state that this should be somewhere which an individual uses with a sufficient degree of permanence or stability to count as a home. HMRC does not provide a detailed definition of home, but state that a person’s home is a place that a reasonable onlooker with knowledge of the material facts would regard as that person’s home.

A home is not considered to be a home for these purposes if:

  • The individual moves out completely, and makes it available for commercial letting on a permanent basis.
  • A place has never been capable as being lived in as a home, for example if it has been purchased in such a state of disrepair as rendering it incapable of being lived in as a home.

A holiday home, retreat or similar is not a home if the individual only spends time there on occasional short breaks which provide a distinct respite from ordinary day-to-day life. If however a holiday home changes so that it is used as a home, then it will continue to be a home until such time as the circumstances change and it ceases to be used as a home.

Work

The individual is considered to be working in the UK at any time when he is doing something:

In the performance of duties of an employment held by him, in particular if the individual receives value for this, then it will fall within this definition; or

In the course of a trade carried on by him either alone or in partnership. The test here is if expenses were incurred on doing the thing, and those expenses could be deducted in calculating the profits of the trade for income tax purposes (assuming the individual were chargeable to income tax), then he will be considered to be working in the UK.

Work is done where it is actually done, regardless of where the employment is held, or where the trade is carried on by the individual.

Time spent travelling counts as work time if the cost of the journey could be deducted in calculating the individual’s earnings, or profit from a trade.

Similarly, time spent undertaking training is treated as work time if the cost is borne by the individual’s employer and is undertaken to help the individual perform the duties of the employment, or in the case of a trade carried on by the individual, the cost of the training could be deducted in calculating the profit for income tax purposes.

A voluntary position for which the individual does not have a contract of service is disregarded in determining the number of work-days.

Full-time work

Full-time work is regarded to be on average across the period 35 hours or more per week as adjusted for:

  • Reasonable amounts of annual leave taken by the individual during that period; and
  • Absences from work where the individual is on sick leave, and cannot reasonably be expected to work as a result of the illness or injury.

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