Statutory Resident Test: The Accommodation Tie

Expanding on the article ‘Are you resident in the UK?’, the sufficient ties test forms part of the Statutory Resident Test. The sufficient ties test is considered when determining UK tax residence status for a tax year (if you do not meet any of the Automatic Overseas tests or Automatic UK tests). In brief, the test essentially looks at whether an individual has any ties which deem them to be a UK resident.

We recommend you read ‘Days spent in the UK’ before considering each tie, as the number of days you spend in the UK in a tax year dictates the number of UK ties that make you a UK resident.

This article addresses one test of connection - the accommodation tie.

Do you have an Accommodation Tie?

You have an accommodation tie for a tax year if you have a ‘place to live’ in the UK which is available to you for a continuous period of at least 91 days in the tax year, and at least one night is spent there.

A ‘place to live’ in the UK could be a home, holiday home or temporary retreat in the UK, or other accommodation that you can live in when you are in the UK. This includes property you might let from third parties.

If the accommodation belongs to a ‘close relative’, the threshold is 16 days i.e. if you spend 16 or more nights there during the year. Gaps of fewer than 16 days in the availability of the accommodation will count towards the continuous period of availability.

A ‘close relative’ is a:

  • Parent/grandparent
  • Brother/sister
  • Child/grandchild over 18 years
  • Your blood or half-blood relative or someone related through marriage or civil partnership. Adopted children are considered to be your children for these purposes.

Generally speaking, where property you own is let to an unconnected third party under an Assured Shorthold Tenancy or similar, then this property would not constitute available property for the period for which it is let.

We recommend you seek professional advice for an accurate assessment of your UK tax residency status for a particular tax year.

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.