The rules regarding establishing residence of an individual are one area I expect could feature in the Tax and Advanced Tax exams.
It is initially important to work out if the individual is a leaver or arriver to the UK.
We then use the automatic non residency tests. For leavers, they are automatically non-resident if they spend no more than 16 days in the UK.
With arrivers, they are automatically non-resident as long as they spend no more than 46 days in the UK.
If the automatic non residency tests do not apply, we then look at the automatic UK residency tests.
Leavers are automatically UK resident if they are in the UK for at least 30 days and only have a UK home.
Leavers are automatically UK resident if they spend at least 183 days in the tax year.
If the automatic UK residency tests do not apply, then it is necessary to consider how many UK ties the individual has.
For leavers we look for 5 ties –family, accommodation, days, employed and country
However, for arrivers only the first 4 ties are relevant-family, accommodation, days and employed.
When considering the days tie, a common error students make is looking at the current tax year when instead the correct approach is to look at the two previous tax years and check if the individual was UK resident for at least 90 days in any one tax year.
With just under a month to the exam now, it is important to ensure that you have the necessary technical knowledge to work through exam questions such as Q43 Waverley and Q45 Max in the Kaplan exam kit
Hope your revision is going well. Tax is technical. If you need my condensed notes which makes it simple to learn the technical rules, you can purchase them using the link below:
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