Statutory Residency Test (“SRT”) – Children in Full Time Education

Written by Arnold Hill on November 15, 2017

A common question asked is how children in full time education might affect the residency of a taxpayer parent.

In respect of a child under the age of 18 and in full time education, that child should only represent a family tie to the parent for the purposes of the SRT if the child is resident in the UK on 21 days outside of term time. Half term holidays and inset days are considered term time for the purposes of this test.

From a practical perspective, this permits children to take just two or three days at the start and end of every term to settle into or depart from the UK in order to avoid this connection factor.

Full time education for the purposes of this legislation would be full time schools, colleges, universities or other educational establishment in the UK.

You should note however that the child themselves are likely to be resident in the UK for the tax year in which they are undertaking full time education in the UK as the child will almost certainly have spent more than half the tax year in the UK.  As a consequence, a child who perhaps schools in the UK from age 8 could potentially be deemed domiciled in the UK by the time they’re 23, even though 13 of those years might have been whilst the child was in full time education at school, then college, then university.

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.