The Statutory Residence Test (SRT) is used to determine whether an individual is resident in the UK for UK tax purposes.
The SRT is split into three sections which you should work through in turn:
- Automatic Overseas Test
- Automatic Residence Test
- Sufficient Ties Test
An individual may also be distinguished as a ‘leaver’ or an ‘arriver’, and the test will be based on this accordingly.
Automatic Overseas Test
If you meet any of the following automatic overseas tests, you are automatically non-resident for the tax year:
- Resident in the UK for one or more of the three preceding tax years (leaver) and spend fewer than 16 days in the UK in that tax year.
- Not resident for the three preceding tax years and spend fewer than 46 days in the UK in that tax year.
- Work full time overseas (average of 35 hours a week) in the tax year and spend fewer than 91 days in the UK in that tax year, of which fewer than 31 are spent working.
If none of the above apply, you must consider the next test:
Automatic Residence Test
If you meet any of the following automatic UK tests, you are automatically resident for the tax year:
- Spend more than 183 days in the UK in the tax year.
- Have a ‘home’ in the UK
- Work full time in the UK
If none of the above apply, you must consider the Sufficient Ties Test.
Sufficient Ties Test
The sufficient ties test is rather complex. Based on whether you are a leaver/arriver and how many days you have spent in the UK in that tax year, the test will determine how many ties are required to establish residency. There are five potential ties:
- Family tie – partner or minor children who are resident in the UK
- Accommodation tie – ‘place to live’ in the UK which is available for a continuous period of at least 91 days in the tax year, and at least one night is spent there
- Work tie – work for at least 3 hours of 40 days in the UK in the tax year
- 90 day tie – spend more than 90 days in the UK in either of the previous two tax years
- Country tie (for leavers only) – more days spent in the UK than any other country