The Statutory Residence Test: Understanding UK tax residence
UK Statutory Residence Test: Key Planning Points for International Clients
Overview
The Statutory Residence Test (SRT) determines an individual’s UK tax residence status each tax year and is fundamental in establishing exposure to UK taxation. It's worth remembering that the test is applied on a tax-year by tax-year basis. In the UK, our tax year runs from the 6th of April to the following 5th of April. Many other countries have tax-years which follow the calendar year and so you may need to take care about avoiding dual residence
Structure of the SRT
- Automatic Overseas Tests
- Automatic UK Tests
- Sufficient Ties Test
Split-Year Treatment
Split-year treatment may apply where an individual moves into or out of the UK, particularly for internationally mobile private clients.
HMRC Risk Areas
- Day count evidence
- Work tie interpretation
- Accommodation availability
Advisory Support
We support accountants and clients with residence reviews, treaty interaction analysis, and HMRC enquiry defence.
