Split Year Treatment Print
Split Year Treatment (“SYT”), which up to April 2013 is allowed by Extra Statutory Concession A11, is now statutory and is linked to the SRT. Under the SRT an individual is either resident in the UK for the entire tax year, or for none of it. The principle of SYT is to split the tax year into two parts, for a year in which an individual either leaves the UK to live abroad, or comes to live in the UK. SYT cannot apply to an individual who is not regarded as resident under the SRT.
The effect of SYT is to limit the income and gains that are taxable in the UK to the UK source income, and any overseas income arising during the UK part of the tax year, so that overseas income arising during the non-UK part of the year is not taxed here.
Split year treatment applies in the following 8 cases. The first 3 cases relate to individuals leaving the UK, and the last 5 cases are in respect of individuals coming to the UK:
- Starts full-time work overseas
- The partner of someone starting full-time work overseas
- Ceasing to have a home in the UK
- Starting to have a home in the UK only
- Starts full-time work in the UK
- Ceasing full-time work overseas
- The partner of someone ceasing full-time work overseas
- Starting to have a home in the UK