Statutory residence test: HMRC residence tool updated

Tue 15 Apr 2014

HMRC’s residence indicator has been upgraded to enable users to decide if one of split year cases 1-3 (year of departure) applies.  Split year treatment may apply where a taxpayer started to live or work abroad during a tax year.  Those three cases are:

1)      starting full-time work overseas;

2)     partner of someone starting full-time work overseas; and

3)     ceasing to have a home in the UK.

The residence indicator cannot be relied on always to give a definitive, correct result but it will tell you what HMRC’s response to circumstances is likely to be.  The statutory residence test is extremely complicated and professional advice should be sought.