Statutory Residence Test (SRT)
8 August 2013
The SRT, which came into effect on 6th April 2013, allows individuals to determine whether they are UK resident for tax purposes in any tax year. The following steps should be followed in order and as soon as you have determined your residence status, no further steps are required:
Individuals are separated into 3 different categories which are subject to different rules:
- Automatically Non-Resident (Part A). If you do not meet any of the conditions set out in Part A of the table below move to category 2;
- Automatically Resident (Part B). If you do not meet any of the conditions set out in Part B of the table below move to category 3;
- If Part A and B do not apply, you look at the Sufficient Ties Test (Part C). Firstly you determine
whether you are an arriver or leaver in that particular tax year (see below). The days that you are in the UK and the corresponding connecting factors then determine whether you are resident in the UK.
Factors/Ties to the UK:
- Family Tie - spouse/ partner/ common law equivalent or minor children are resident in the UK;
- Accommodation Tie - you have accessible accommodation which is available for at least 91 days in the year and you spend at least 1 night there in the tax year;
- Work Tie - you do not work full time in the UK, but perform more than 40 days work during the tax year in the UK;
- 90 Day Tie - you have spent more than 90 days in the UK in either of both of the two previous tax years;
- Country Tie - you spent more days in the UK than any other single country in the tax year. You will need to consider this if you were UK resident for one or more of the 3 tax years before the tax year under consideration.
| RESIDENCE TEST | |||
| PART A - Automatically Non-Resident | |||
| If any of these conditions are met you are Non UK Resident: |
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| PART B - Automatically Resident | |||
| If any of these conditions are met you are UK Resident: |
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| PART C - Sufficient Ties Test | |||
| If neither Part A nor Part B apply, your residence status is determined by: |
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| Arriver | Leaver | ||
| Not been UK resident in any of the previous three tax years | If you have been resident in one or more of the previous three years | ||
| Always non-resident Resident if individual has 4 factors Resident if individual has 3 factors Resident if individual has 2 factors Always resident |
< 45 days 46-90 days 91-120 days 121-182 days > 183 days |
Always non-resident Resident if individual has 4 factors Resident if individual has 3 factors Resident if individual has 2 factors Resident if individual has 1 factor Always resident |
< 16 days 16-45 days 46-90 days 90-120 days 121-182 days > 183 days |
The information in this article is believed to be factually correct at the time of writing and publication, but is not intended to constitute advice. No liability is accepted for any loss howsoever arising as a result of the contents of this article. Specific advice should be sought before entering into, or refraining from entering into any transaction.