Statutory Residence Test - HM Revenue & Customs

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The statutory residence test Second automatic overseas test 1.6 You were resident in the UK for none of the three tax years preceding the tax year, and you spend fewer than 46 days in the UK in the tax year. Third automatic overseas test 1.7 You work full-time overseas over the tax year, without any significant breaks during the tax year from overseas work, and: you spend fewer than 91 days in the UK in the tax year, the number of days in the tax year on which you work for more than three hours in the UK is less than 31. Paragraph 1.10 explains how to calculate whether you have worked sufficient hours overseas to count as full-time work overseas. 1.8 The third automatic overseas test does not apply to you if: you have a relevant job on board a vehicle, aircraft or ship at any time in the relevant tax year, and at least six of the trips you make in that year as part of that job are cross-border trips that: begin in the UK end in the UK, or begin and end in the UK. 1.9 If you do not meet any of the automatic overseas tests, you should look at the automatic UK tests. If you meet any of the automatic UK tests you are resident in the UK for the tax year. If you do not meet any of the automatic UK tests you will need to consider the sufficient ties test. For the application of the automatic overseas tests to deceased individuals, please see Section 4. Do you work full-time overseas? 1.10 You will be considered to work full-time overseas if you work for sufficient hours overseas as calculated over the tax year in the case of the third automatic overseas test, or other relevant period in the case of split year Cases 1 or 6. To calculate if you work sufficient hours overseas, take the following steps (for deceased persons follow the steps given at paragraph 4.4): Step 1 Identify any ‘disregarded days’: these are any days in the tax year, or the relevant period in the case of split years, on which you work for more than three hours in the UK, including those days when you also do some work overseas on the same day. RDR3 10
The statutory residence test Step 2 Calculate your ‘net overseas hours’: add up (for all your employments and/or trades you carried on) the total number of hours that you actually worked overseas in the tax year (not the hours specified in your contract), or the relevant period in the case of split years; do not include in your net overseas hours any hours that you worked overseas on disregarded days. Step 3 Calculate the number of days in your ‘reference period’. To do this you should subtract from 365 (366 if the tax year includes 29 February), or the relevant period in the case of a split year: the total number of disregarded days (step 1), any days that were part of gaps between employments other days that can reduce the reference period. Step 4 Divide the number of days in your reference period (step 3) by seven. If the answer is more than one and is not a whole number, you should round your answer down to the nearest whole number. If the answer is less than one, round up to one. Step 5 Divide your net overseas hours (step 2) by the number resulting from Step 4. If your answer is 35 or more you have worked sufficient hours overseas during either: that particular tax year for the purposes of the third automatic overseas test, or the relevant period for split year Cases 1 or 6. Gaps between employments 1.11 If: you change employment during the tax year or relevant period there is a gap between your employments you do not work at all at any time between the two employments, you can subtract from your reference period the number of days in that gap. However, if the gap lasts more than 15 days only 15 days may be subtracted. If the gap spans the end of the tax year you may subtract from your reference period the part of the gap that falls within the tax year, subject to the other conditions above. 1.12 If you have more than one change of employment during the tax year, or the relevant period, you can subtract from your reference period up to 15 days RDR3 11
Page 1 and 2: Guidance Note: Statutory Residence
Page 3 and 4: Workers with jobs on board vehicles
Page 5 and 6: The statutory residence test accomm
Page 7 and 8: Changes in this version RDR3 update
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Page 15 and 16: The statutory residence test - mate
Page 17 and 18: The statutory residence test Refere
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Page 29 and 30: The statutory residence test Table
Page 31 and 32: Definition of UK ties spends fewer
Page 33 and 34: Days spent in the UK 3. Days spent
Page 35 and 36: Days spent in the UK Example 16 Des
Page 37 and 38: Days spent in the UK In this scenar
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Page 43 and 44: Days spent in the UK 3.30 If you ha
Page 45 and 46: Application of the SRT to deceased
Page 51 and 52: Split Year Treatment 5. Split year
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Split Year Treatment Example 37 Ola
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Split Year Treatment Example 38 And
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Split Year Treatment 5.37 Table G s
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Split Year Treatment if you had h
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Split Year Treatment Example 41 Nic
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Period of temporary non-residence S
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Period of temporary non-residence E
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Period of temporary non-residence
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Period of temporary non-residence
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Record keeping 7. Record keeping Wh
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Record keeping The sufficient ties
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Transitional provisions Statutory C
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Annex A Annex A: Home and accommoda
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Annex A Example A3 William has busi
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Annex A A16 The key points are that
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Annex A A25 If an individual cannot
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Annex A Example A16 Sacha visits th
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Annex A continuously in a tax year,
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Annex B Split year Cases 4 and 5 -
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Annex B Example B2 Henrik is workin
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Annex B Example B5 Philip is a stru
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Annex C Example C1 George and his w
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Annex C Example C4 Clara is 14 year
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