Statutory Residence Test - HM Revenue & Customs

Split Year Treatment
Case 1: UK part of a tax year
5.15 The UK part of the tax year is the period from the start of the tax year
until the start of the overseas part.
Example 33
Richard has lived and worked in London for the last ten years and is UK
resident for tax purposes. He is seconded abroad by his employer for a three
year period. His overseas contract starts on 3 November 2014 when he takes
up duty at his new office in Madrid. This example assumes he fails the third
automatic overseas test for 2014-15 but meets it for 2015-16.
On 2 December 2014 he returns to the UK office to finish off a project he was
involved in before his secondment. His work in the UK is completed on 16
December 2014 (11 UK workdays and four non-working days). He then takes
leave until 28 December (12 days) flying back to Madrid and resuming work
on 29 December. On his return to Madrid he works only at the Madrid office
until 5 April.
Richard calculates that he meets the criteria for Case 1 split year treatment
from 3 November, this being the first date on which he works for more than
three hours overseas. Using table E he calculates that between 3 November
2013 and 5 April 2015 he can spend 37 days in the UK and work for more
than three hours in the UK for up to 12 days.
Richard determines that:
- he was UK resident for the previous tax year (2013-14)
- he is resident in the UK for the current year (2014-15) and that he does
not meet the third automatic overseas test
- he was non-UK resident for 2015-16
- he calculates that he meets the sufficient hours overseas test for the
period 3 November 2014 to 5 April 2015
- he did not exceed the limits of 12 UK work days and 37 days spent in
the UK between 3 November 2014 and 5 April 2015, and
- he had no significant break from overseas work during the period.
To determine that he worked full time overseas during a relevant period,
Richard did the calculations below. (Continues on next page)
RDR3 54