Laws on Residence and Non Residence for BritonsMay 29, 2021
The ruling in the infamous case, Robert Gaines-Cooper vs. HMRC, in 2006 had made people wonder about possible changes in the residency and non-residency rules for British people, especially for tax purposes. The Revenue Department of the Government of the United Kingdom has subsequently asserted that the rules have not changed due that ruling. Still, it is necessary to understand the residency and non-residency rules applicable to Britons for tax purposes. This article covers only the British people who leave the country and not those who enter it.
Determination of Residency
According to the Revenue Department, the major factors that determine residency, ordinary residency and non-residency are clearly defined. Still, the decision that the department takes depends on any specific individual as per is particular situation or case. The following points will help in you in getting a general understanding about your status on this issue. However, if you wish to know about your specific status at any particular time, it is advisable that you obtain a qualified legal counselling on this issue Ki Residences.
Residency in UK for Tax Purposes
If you reside in the United Kingdom for over 183 days in any tax year, you will be treated as a British resident for tax purposes and there are no exceptions to this rule. However, the following points are allowed by the Revenue Department for consideration of the number of days.
• The total number of 183 days in a tax year need not run consecutively
• After April 6, 2008, the arrival and departure days will be included in residency, i.e., if you arrive in the country at the end of the day, it will be counted as a day spent in the country for residency purposes
• However, if you arrive on any day and depart the country the next day itself and remain in transit in any airport, those days will not counted in the residency period
• Still, if you indulge in any activity within the country, such as a business meeting, visiting a property, etc., then these two days will not be considered as transit periods
If you take a long vacation and remain in the country for less than 183 days in a tax year, you will be considered as ordinary resident in such a case. As such, for any non-residency claim, you should ensure that you do not come under the above two categories of UK residents.