UK Statutory Residence Survey


Determining UK tax residency is key for individuals with connections to the UK, especially with upcoming changes to the non-dom status in April 2025. This brief guide breaks down the essential tests and criteria to help you understand your UK tax obligations.

Our full UK statuatory residence survey features the general questions from both the "Automatic Residence" test, and the "Sufficient Ties" test. This should be used to gain insight into whether you may qualify as a UK Resident

!Important This survey only offers a top line overview of whether you may be considered a UK resident in the eyes of UK law. There are more factors that may be taken into account when the HMRC dertermine your residency statement depending on your personal situation. It is always worth consulting a tax professional unless you are entirely sure regarding UK law.

Understanding your tax residency in the UK is essential as it influences your tax obligations. Here's a more detailed breakdown of the criteria to help you determine if you're a UK tax resident:

1. Automatic Overseas Test


You're considered non-resident if any of the following applies:

  • 16-Day Rule: You spent fewer than 16 days in the UK and were a UK resident in one or more of the previous three tax years.

  • 46-Day Rule: You spent fewer than 46 days in the UK and haven't been a UK resident for the previous three tax years.

  • Work Abroad: You work full-time overseas with no more than 30 workdays in the UK, totalling 75 or fewer days in the country.


2. Automatic UK Test


You're automatically a UK resident if:

  • 183-Day Rule: You're in the UK for 183 days or more in a tax year.

  • UK Home: You have a home in the UK for at least 91 days, are present in that home for at least 30 days during the year, and have no overseas home where you spend significant time.

  • Full-time Work in the UK: You work full-time in the UK for any period of 365 days with no significant break, and more than 75% of your workdays are in the UK.

3. Sufficient Ties Test


If your residency status isn't determined by the automatic tests, your ties to the UK are considered:

  • Family Tie: You have a family member (spouse, civil partner, or minor child) who is resident in the UK.

  • Accommodation Tie: You have accessible accommodation in the UK, and you use it during the tax year.

  • Work Tie: You work in the UK for 40 or more days in the tax year.

  • 90-Day Tie: You spent more than 90 days in the UK in either of the two preceding tax years.

  • Country Tie: Applicable if you were a UK resident for more of the previous three tax years than any other single country.

The number of ties you need to be considered a UK resident increases with the number of days you spend in the UK.


Non-Dom Update

Starting April 6, 2025, the non-dom regime will undergo significant changes. The remittance basis of taxation for non-doms will be replaced by a new system. If you become tax resident after a period of ten years of non-UK residence, you won't pay tax on foreign income and gains for the first four years of your UK residency, provided this income remains offshore. This aligns the UK more closely with international standards and simplifies the tax system for individuals moving to the UK.

Summary

Determining UK tax residency involves careful consideration of your circumstances against the statutory tests. Given the complexity, especially with the upcoming changes to the non-dom status, consulting with a tax professional is advisable to ensure compliance and optimal tax planning.


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