The Statutory Residence Test represents an unprecedented overhaul of the tax rules on UK residency. Importantly, since its introduction in 2013, some individuals who had considered themselves UK resident need to spend significantly more time here in order to remain resident under the new rules.
If you are considering coming to or leaving the UK, we recommend that you seek professional tax advice on the SRT before doing so. The rules are an interlocking series of tests with factors such as number of days spent in the UK in the current and preceding tax years as well as the existence of ties to the UK through your home, family and/or work. HM Revenue & Customs has access to flight and Eurostar manifests and consequentially they may come to the realisation that you have UK tax to pay before you do.
Mark Davies & Associates can advise on the implications of these new rules in your particular circumstances and explain how to maintain or achieve your desired residence status.
Clients wishing to become or remain UK tax resident
- Many of our clients are entrepreneurs coming to live in the UK on the Tier 1 Investor or Entrepreneur’s visa and are required to be UK tax resident in order to comply with the regulations of their visa. We recommend seeking specialist tax advice before arriving in the UK in order to have time to arrange an émigré’s tax affairs in the most effective way.
- Our team provide guidance to foreign domiciled individuals who wish to take advantage of the UK’s beneficial “non-dom” regime via the remittance basis and need to achieve UK tax residency in order to be eligible. (Link to remittance basis)
- We also advise those wishing to ensure that they remain resident in the UK in order to lose their liability to tax in particular countries in which they spend time. The UK has a wide network of double tax treaties and a well informed decision to deliberately become UK tax resident by invoking the “tie-breaker” article can ensure that tax is paid at a lower rate only in the UK and not in another jurisdiction.
Clients wishing to become or remain non – resident
- Some individuals who visit or work in the UK regularly may wish to make sure that they stay non UK tax resident in order to avoid a UK tax liability.
- We guide clients who are in the process of leaving the UK on how to break their UK tax residency through becoming definitively non UK tax resident in the year that they leave and thereafter. Effective planning prior to departure from the UK can minimise an expat’s tax liability.
Our clear advice can ensure that you do not find yourself tax resident (or not resident) in the UK inadvertently and avoid potentially costly tax consequences.
Contact us on our enquiry form here to find out how to receive advice on your situation and details of our services.