StatutoryResidenceTest

The Statutory Residence Test is the set of rules HMRC uses to decide whether someone is resident in the UK for tax purposes in a given tax year, which in turn affects how much of their worldwide income and gains are taxable here. It works through a series of tests based on factors such as days spent in the UK, work patterns and personal ties.

The test can produce results that surprise people who assume residence is simply about where they consider 'home' to be, particularly those splitting time between the UK and abroad, or arriving or leaving partway through a tax year. Given how much can turn on it, we recommend reviewing your position with us before a move, secondment or extended period overseas.