Statutory Residence Test

Statutory Residency Test (SRT) was introduced by HMRC on 6 April 2013 to determine the residency status of an individual for income tax and capital gains tax purposes. The SRT determines whether an individual is resident in the UK for a tax year. It considers both the amount of time the individual spends in the UK and the other connections they have with the UK such as family, accommodation, work etc.

There are three essential parts of SRT:

  • The Automatic Overseas Test – If any of these tests are met, the individual is conclusively non-UK resident for the tax year.
  • The Automatic Residence Tests – if any of these tests are met, the individual is conclusively UK resident for the tax year.
  • The Sufficient Ties Tests – These tests consider whether an individual has sufficient UK ties while taking into accounts the number of days he was present in the UK

The above SRT rules are very complex and therefore it is advisable to get professional advice before making any decision about your residency status.

At Martax, we can help you with the following:

  • Detailed analysis of your current residency status by applying SRT
  • Advice in relation to your tax position
  • Whether to pay tax on the arising or remittance basis in case of non-domicile individuals
  • Preparation of your tax return based on your residency status
  • Advice on your tax liabilities and when they are due.

If you need any help or advice in relation to the above issues, please get in touch.

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