Statutory Residence Test - HM Revenue & Customs

More documents

Recommendations

Info

Days spent in the UK Example 17 Holly regularly visits the UK for work and social engagements. She also travels widely. She is planning to visit her Aunt in Philadelphia, and will be flying in from Rome to connect with her continental flight at Heathrow. Holly’s flight lands at 23:05 on Monday evening. Her flight to Philadelphia does not depart Heathrow until 11:05 on Tuesday. Holly decides to stay at an airport hotel to catch some sleep, before returning to board the plane for her onward journey. She merely leaves the airport, catches a taxi to the hotel, sleeps, and snatches a quick breakfast before returning to the airport. The transit arrival day (Monday) spent in the UK would not count as a day for Holly when she considers how many days she spent in the UK at the end of the tax year. The departure day (Tuesday) may count as a qualifying day under the deeming rule. Example 18(a) Holly’s brother, Lawrence, has a similarly itinerant lifestyle. He too is visiting their Aunt in Philadelphia, and will be flying in from Toulouse to connect with their continental flight at Heathrow. Lawrence’s flight lands at 17:20 on Monday evening. Their flight to Philadelphia does not depart Heathrow until 11:05 on Tuesday. Lawrence decides to stay at an airport hotel to catch some sleep before returning to board the plane on Tuesday. In this scenario the midnight spent in the UK will not count as a day spent in the UK for SRT purposes. The departure day (Tuesday) may count as a qualifying day under the deeming rule. Example 18(b) The circumstances are as for 18(a) but Lawrence decides that as he has a long transit period in the UK he will meet up with some friends and go to the theatre. In this scenario Lawrence’s meeting friends and visiting the theatre is regarded as being to a substantial extent unrelated to his passage through the UK and therefore the midnight spent in the UK will count as a day spent in the UK for SRT purposes. The following day (Tuesday) may also count as a qualifying day under the deeming rule. Example 18(c) The circumstances are as for 18(a) but Lawrence meets his team leader for dinner to discuss work related issues. Their meeting lasted for an hour and a half. (Continued on next page) RDR3 36
Days spent in the UK In this scenario the meeting with his team leader is regarded as being to a substantial extent unrelated to his passage through the UK and the midnight spent in the UK will count as a day spent in the UK for SRT purposes. The following day (Tuesday) may also count as a qualifying day under the deeming rule. Work 3.10 Time spent working is relevant in several places in the SRT: the third automatic overseas test may apply if you work full-time overseas the third automatic UK test may apply if you work full-time in the UK you will have a work tie if you work for more than three hours in the UK on at least 40 days in the tax year; you may be entitled to split year treatment if you leave the UK to work full-time overseas, or arrive in the UK to work full-time here. What activities does ‘work’ cover? 3.11 Work takes its everyday meaning. If you are an employee, work covers the activities you carry out in the performance of your duties. If you are selfemployed it covers the activities you carry out in the course of your trade, profession or vocation. 3.12 A voluntary post for which you have no contract of service does not count as work for the purposes of the statutory residence test. What else is counted as time spent working? 3.13 Your time spent working includes: instances where your employer instructs you to stay away from work, for example while serving a period of notice while you remain on the payroll travelling time where the cost would have been a deductible expense for tax purposes had you incurred and paid for the costs yourself, regardless of whether or not you worked during the travel in question travelling time to the extent that you work during your journey, regardless of the rules on tax deductibility job-related training: provided or paid for by your employer, or if you are self-employed, where the cost is an allowable deduction against your profit for income tax purposes. Number of hours worked in a day 3.14 It may be important for you to know how many hours you have worked in a day, because: RDR3 37
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
Page 9 and 10: The statutory residence test Automa
Page 11 and 12: The statutory residence test Step 2
Page 13 and 14: The statutory residence test across
Page 15 and 16: The statutory residence test - mate
Page 17 and 18: The statutory residence test Refere
Page 19 and 20: The statutory residence test Exampl
Page 23 and 24: The statutory residence test 30-day
Page 27 and 28: The statutory residence test Sam wo
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: Days spent in the UK Example 16 Des
Page 39 and 40: Days spent in the UK Example 20 Mem
Page 41 and 42: Days spent in the UK Example 24 Shi
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
Page 53 and 54: Split Year Treatment spend no more
Page 55 and 56: Split Year Treatment His reference
Page 57 and 58: Split Year Treatment move oversea
Page 59 and 60: Split Year Treatment spend fewer
Page 61 and 62: Split Year Treatment Example 37 Ola
Page 63 and 64: Split Year Treatment Example 38 And
Page 65 and 66: Split Year Treatment 5.37 Table G s
Page 67 and 68: Split Year Treatment if you had h
Page 69 and 70: Split Year Treatment Example 41 Nic
Page 71 and 72: Period of temporary non-residence S
Page 73 and 74: Period of temporary non-residence E
Page 75 and 76: Period of temporary non-residence
Page 77 and 78: Period of temporary non-residence
Page 79 and 80: Record keeping 7. Record keeping Wh
Page 81 and 82: Record keeping The sufficient ties
Page 83 and 84: Transitional provisions Statutory C
Page 85 and 86: Annex A Annex A: Home and accommoda
Page 87 and 88:
Annex A Example A3 William has busi
Page 89 and 90:
Annex A A16 The key points are that
Page 91 and 92:
Annex A A25 If an individual cannot
Page 93 and 94:
Annex A Example A16 Sacha visits th
Page 95 and 96:
Annex A continuously in a tax year,
Page 97 and 98:
Annex B Split year Cases 4 and 5 -
Page 99 and 100:
Annex B Example B2 Henrik is workin
Page 101 and 102:
Annex B Example B5 Philip is a stru
Page 103 and 104:
Annex C Example C1 George and his w
Page 105:
Annex C Example C4 Clara is 14 year
show all

Statutory Residence Test - HM Revenue & Customs

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?