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no exceptions to this. You will also be treatedas resident for a tax year if you visit the UKregularly and after four tax years your visitsduring those years average 91 days or more atax year. Depending on the circumstancesrelating to the pattern of your life, you may betreated as a UK resident even if you spendshorter periods in the UK. From 6 April 2008,when counting days spent in the UK you arerequired to include days of arrival (previouslythey were left out of account) but you do nothave to include days of departure from the UK.In effect you now count the number ofmidnights spent in the UK.However, overnight stays when transitingthrough the UK can also be ignored, providedthe individual in question does not engage (toa substantial extent) in activities unrelated tohis transit through the UK.A new, statutory residence test is due to takeeffect from 6 April 2013. The new test will bebased on a combination of (a) the number ofdays which an individual spends in the UKand (b) certain connecting factors. It will beeasier to maintain non-residence as an“arriver” in the UK than to establish non-UKresidence as a “leaver”. The new test shouldbe much clearer than the current system fordetermining UK tax residence and at the sametime should allow some non-UK residents adegree of additional flexibility in managing theirvisits to the UK. Draft legislation on the newstatutory residence test is still awaited at thetime of writing.Ordinary residenceFrom 6 April 2012 the test of ordinaryresidence is due to be simplified and will berelevant only to the so-called “workday” relief(see further below). Draft legislation is awaitedon this.The current position (ie until 6 April 2013) isthat if you are resident in the UK year afteryear, you are treated as ordinarily residenthere. You may be resident but not ordinarilyresident in the UK for a tax year if, forexample, you normally live outside the UK butare in this country for 183 days or more in theyear.Or you may be ordinarily resident but notresident for a tax year if, for example, youusually live in the UK but have gone abroad fora long holiday and do not set foot in the UKduring that year. In practice, however,residence and ordinary residence normally gotogether.DomicileBroadly speaking, you are domiciled in thecountry where you have your permanenthome. Domicile is distinct from nationality orresidence. Under English law you can onlyhave one domicile at any given time.A person resident and ordinarily resident butnot domiciled in the UK is subject to incometax on the remittance basis (see below) onoverseas earnings if certain conditions aresatisfied. To enjoy the remittance basis onoverseas earnings the individual must be aremittance basis user, (which means that,where appropriate he/she has paid the socalledremittance basis charge of £30,000 or£50,000 for the tax year in question), his/heremployer must be resident outside the UK andthe duties of employment must be performedwholly outside the UK. For this purpose“incidental duties” can be ignored, althoughincidental duties are narrowly construed andgreat care is required if this is to be reliedupon.A person who is UK resident but not ordinarilyresident and who is a remittance basis user(which means that, where appropriate he/shehas paid the so-called remittance basis chargeof £30,000 or £50,000 for the tax year inquestion) is subject to income tax on thearising basis on remuneration for duties whollyor partly performed in the UK, but is liable toincome tax on remuneration for dutiesperformed wholly outside the UK only wheresuch remuneration is brought into (or remittedto) the UK.A person who is neither resident, nor ordinarilyresident in the UK (e.g. someone who is sentto work in the UK for a short period of time)may be subject to income tax on remunerationfor duties performed wholly or partly in the UK.A UK resident, non-domiciliary’s investmentincome from sources in the UK is taxed in full.Such an individual’s income from non-UKsources is taxed (provided such individual haselected for the remittance basis and, whereappropriate, has paid the remittance basischarge) to the extent that it is remitted to theUK.An individual who is UK resident and/orordinarily resident in the UK but not domiciledand who is a remittance basis user is liable tocapital gains tax on disposals of non-UK situsassets on the remittance basis and is liable tocapital gains tax on disposals of UK assets onthe arising basis. Special rules apply if a UKPAGE 14