One area I expect will feature in September’s Advanced Tax and Tax exams 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 (must have a UK home), at least 183 days or works 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-only take spouse or kids, accommodation- used and available for 91 consecutive days, has substantial UK work for at least 40 days, been in the UK for at least 90 days in either of the previous 2 tax years and country tie-more time in the UK compared to the other countries.

By the way, the country tie is only applied to individuals leaving the UK .

Once you know how many UK ties the individual has, you then refer to the table provided and based on the number of days spent in the UK in the current tax year decide if the client is UK resident.

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.

If you are planning on doing Taxation or Advanced Tax in September 2022 or December 2022, 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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