One area I expect will feature in next week’s Advanced Tax exam is overseas aspects for individuals.

You need to learn the automatic residency statutory tests

Automatically non-resident if in the UK for less than 16 days (leavers), less than 46 days (arrivers) or less than 91 days (visitors).

Automatically UK resident if in the UK for at least 30 days (UK home), at least 183 days or work full time in the UK.

If the automatic tests do not apply then look at how many ties the individual has to the UK (close family, accommodation, work, 90 days in either of the previous 2 tax years and country tie) and based on the number of days spent in the UK in the current tax year decide if the client is UK resident.

You will be provided with a table in the exam

If a UK resident (4 out of the last 7 years) leaves the UK for less than 5 years, the individual is called a temporary non-UK resident.

As a result, any gains on assets owned before leaving and sold while non-resident will be taxed in the tax year of return to the UK.

Any assets bought after leaving the UK and sold before returning to the UK will escape UK CGT.

Non residents pay CGT on UK property gains regardless of when these assets are bought. The property could be bought before leaving the UK or after leaving the UK.

Residential gains are taxable from April 2015 onwards and the asset will be bought after April 2015 so the gain is sale proceeds less cost.

Commercial property is taxable from April 2019 onwards and the asset could be bought before April 2019 so the gain is sale proceeds less market value April 2019.

If you are planning on doing Taxation or Advanced Tax in December 2022 or March 2023, I recommend you purchase Tax Condensed or Advanced Tax Condensed which will allow you to learn the technical rules If you then practice the key questions I recommend, you too will be ready for anything the examiner throws at you.

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