The new statutory test of residence for individuals comes one step closer with the publication of a summary of the responses to the consultation launched at Budget 2011 together with draft legislation
The new statutory test of residence for individuals comes one step closer with the publication of a summary of the responses to the consultation launched at Budget 2011 together with draft legislation which is due to come into force as part of the Finance Act 2013. The Government is seeking views by 13 September 2012 on the issues in this report and the draft legislation with a view to publishing final draft legislation in the autumn. We will issue a revised briefing on the new statutory test at that stage.
By way of a reminder, the Government's aim in introducing the new statutory test is not to change the residence status of the vast majority of people, but rather to provide more clarity about residence status and to make the UK a more attractive place for investors. This is particularly necessary following a succession of Court decisions in recent years which have confirmed that HM Revenue & Customs are not bound by their own published guidance on tax residence status, which has increased uncertainty about the test.
By way of a reminder, the Government's aim in introducing the new statutory test is not to change the residence status of the vast majority of people, but rather to provide more clarity about residence status and to make the UK a more attractive place for investors. This is particularly necessary following a succession of Court decisions in recent years which have confirmed that HM Revenue & Customs are not bound by their own published guidance on tax residence status, which has increased uncertainty about the test.