HM Treasury have now released their plans for the new statutory residence test for Expats
London, UK (Pryce Warner International) June 28th, 2012 - Based upon the consultation on a new statutory residence test for Expats to come into force in April 2013. The documentation released acts as a summary of the ideas proposed and outlines several changes that have been agreed.
The HM Treasury list is composed of three sections; one for those who are conclusively non-resident and one for those who are conclusively resident. If those do not apply, the connections an individual has to the UK and the number of days that they spend in the UK are considered in the final test:
Those who are conclusively non-resident will be
- Anyone present in the UK for fewer than 46 days if they have been non-resident in all of the previous three years, or
- Present for fewer than 16 days if they have been resident in one or more of the previous three years, or
- Work full-time abroad and are present in the UK for fewer than 90 days with no more than 20 days* spent working in the UK
The document notes that the Government are requesting views on whether this should be increased to 25 days.
Those who are conclusively resident will be:
- Anyone present for more than 183 days in the tax year, or
- Only has one home and that home is in the UK, or
- Works full-time in the UK
If Parts A & B do not apply, then the number of connecting factors with the UK and the amount of time spent in the UK determines the status.
Though the Government believe that the outline provided is close to a final draft, a further consultation period into the legislation is set to run until mid-September 2012.
By Aneil Fatania
Pryce Warner International Group
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