News

“Am I tax resident?” Moving towards clarity

  • November 26, 2012
  • By Hunters Law

The Government has published draft legislation on a new Statutory Residence Test. The proposals are not yet law, but for those planning to enter or leave the UK, they merit careful attention.

Whether or not an individual is resident in the UK is crucial in calculating his or her liability to tax in this country.  At present, individuals must rely on HMRC guidance and the body of case law in determining their residence status.  There has been (and still is), however, a great deal of uncertainty about the current rules, as demonstrated in recent case law.  As international mobility increases, this lack of certainty is widely acknowledged to be unsatisfactory.

In very simple terms, the new Statutory Residence Test will herald a move to rules still based on day-counting, but with connecting factors (‘sufficient ties’) enshrined in statute – and almost certainly new HMRC guidance.  Ties to be considered are slightly different for persons arriving in the UK and for those leaving.

While it is anticipated that the Statutory Residence Test will provide a greater degree of certainty, the rules are also complex and they will need to be considered by anyone who is planning to move to or from the UK.
Consultation on the first draft of the legislation has now closed and further drafts are now expected to be published.  The Statutory Residence Test is expected to come into effect from 6th April 2013.

For further information, please contact the partner at Hunters having responsibility for your legal matters, or send an email stating the nature of your query to the following address: info@hunters-solicitors.co.uk

Related News

Jun 24, 2021
Flora Nelmes discusses the fees when applying for the Grant of Probate
Jun 22, 2021
Jo Carr-West and Lara Barton discuss CGT for divorcing couples in WealthBriefing’s Family Wealth Report
Jun 21, 2021
Harriet Murray examines the analysis of a Wealth Tax in relation to the circumstances of the COVID-19 crisis
Jun 17, 2021
Flora Nelmes discusses the timings surrounding the probate process
Jun 09, 2021
Flora Nelmes examines the steps involved in obtaining probate in Taxation
Jun 09, 2021
Flora Nelmes discusses the probate process
Mar 29, 2021
Jonathan Gemmell’s summary of the Budget and Tax Day Announcements for Private Clients
Mar 25, 2021
Constance Tait and Julia Richards discuss the importance of making a Lasting Power of Attorney
Feb 09, 2021
Molly Wills discusses The Office of Tax Simplification’s First Report on Capital Gains Tax, in Private Client Business
Jan 06, 2021
Molly Wills discusses The Office of Tax Simplification’s review of Capital Gains Tax

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)