IR20 - Residents and non-residents liability to tax in the United ...

This guidance does not apply from 6 April 2009. The guidance it contains is replaced by the
guidance provided in HMRC6 – Residence, Domicile and the Remittance Basis. It is kept
available for those people who need to make reference to IR20 for their tax affairs before
5 April 2009.
• you come to the UK to work on 14 July 2005 on a 2� year contract of
employment, but in December 2007 your assignment is changed and your
contract is extended until after July 2008*. You are ordinarily resident from 6 April
2007.
* If there is a change in the circumstances of your assignment, but no formal change
to the terms of a contract, whether you are treated as ordinarily resident - and from
what date - will depend on the precise facts.
3.11 If you come to, and remain in, the UK, you will be treated as ordinarily resident
• from the day you arrive, if
- you already own accommodation here
- you buy accommodation during the tax year of arrival, or
- you have or acquire accommodation on a lease of three years or more during
the tax year of arrival; or
• from 6 April of the tax year in which such accommodation becomes available,
when this occurs after the year of arrival.
3.12 If you are treated as ordinarily resident solely because you have accommodation here
(paragraph 3.11) and you dispose of the accommodation and leave the UK within three
years of your arrival, you may be treated as not ordinarily resident for the duration of
your stay if this is to your advantage.
3.13 If you are a student who comes to the UK for a period of study or education and you
will be here for less than four years, you will be treated as not ordinarily resident,
providing
• you do not own or buy accommodation here, or acquire it on a lease of three
years or more, and
• on leaving the UK you do not plan to return regularly for visits which average 91
days or more a tax year.
Contacting HM Revenue & Customs
3.14 You should let us know when you come to the UK. You will normally be asked to
complete form P86, which will help to determine your residence status.
Tax treatment after arrival in the UK
3.15 For details of the tax treatment of your earned income both in the UK and abroad (such
as earnings from employments) after you have become resident in the UK, see Chapter
5 and in particular paragraphs 5.1 - 5.3, 5.9 - 5.12 and the tables at 5.19 - 5.21. For
details of the treatment of any investment income you may have, see Chapter 6 and in
particular paragraph 6.2.
IR20 16
HMRC 03/09