Client Case Study: Residence and a reminder to check your status

The Statutory Residence Test has been around since 2013 and has given a proper basis for determining residence status.

Our client left the UK in 2012 and subsequently made a large capital gain on the disposal of shares in a unlisted trading company.

This was not taxable in the UK because of their non-resident status.

In subsequent years, the client has kept stringent travel records, as they are required to visit the UK for board meetings and we have to deduct PAYE from the relevant earnings.

The early years were further complicated by his young son remaining in the UK, giving a family tie and his partner maintaining a property giving a home tie.

This all meant his UK days had to be kept to a minimum of less than 90 days.

In more recent years, there has been a shift.  His partner and son have joined him overseas and the property has been disposed of.

The client asked recently, “How many workdays can I have in the UK in 2019/20?”

Working through the Statutory Residence Test and considering his position under each test, our client could actually have 182 days in 2019/20 without becoming UK resident.

What a difference a few years make!

If you find yourself in a silimar situation and would like any advice in this area, please get in touch with our Senior Tax Manager, Lucy Orrow.

> Posted by Lucy Orrow

Disclaimer: The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.