The sixth article in a series on the Statutory Residence Test
Residence is not a simple concept. It could be a habitual abode. A place of habitual abode could also denote ordinary residence.
At one time, a person would be deemed resident in the UK if they had property available for their accommodation.
Strictly speaking, a person is tax resident or non-resident for a complete tax year.
However, the difficulties caused by this rule were recognised and extra-statutory concession A11 dealt with this by providing that:
liability to income tax was computed by reference to the period of residence in the UK during the year.
It was a condition of this treatment that, prior to arrival or on departure, the individual was not ordinarily resident in the UK.
The new legislation sets out to codify this:
The shortest period overseas will prevail!
To access other articles in this series, visit the 'Statutory Residence Test' section on this page.
You can also access further information via the 'Related links' section on this page.