The much anticipated statutory test of residence for individuals is now close to a final draft according to the summary of responses to the consultation on the new test published by the Government and
The much anticipated statutory test of residence for individuals is now close to a final draft according to the summary of responses to the consultation on the new test published by the Government and HMRC in June. The statutory test will bring long awaited clarity to the question of UK resident status for many individual taxpayers following the decision in the Gaines-Cooper case in October 2011 where the Court ruled that the taxpayer could no longer rely on HMRC's published guidance on the subject.
Three tests of residence are to be introduced:
• the Automatic Overseas Test, which defines conclusive non residence;
• the Automatic Residence Test, which defines conclusive residence; and
• the UK Ties and Day Counting Test, which will apply to everyone else.
The final version of the draft legislation is expected to be published shortly after Budget 2013 and will be subject to normal Parliamentary scrutiny before it is enacted in the Finance Act 2013, to take effect from April 2013.
We promised a revised briefing paper at this stage which can be found here
Three tests of residence are to be introduced:
• the Automatic Overseas Test, which defines conclusive non residence;
• the Automatic Residence Test, which defines conclusive residence; and
• the UK Ties and Day Counting Test, which will apply to everyone else.
The final version of the draft legislation is expected to be published shortly after Budget 2013 and will be subject to normal Parliamentary scrutiny before it is enacted in the Finance Act 2013, to take effect from April 2013.
We promised a revised briefing paper at this stage which can be found here