Proposed General Rules on Residence Status for UK Tax Purposes

Following on from our “points of view” item on 20th October we now give some details on the proposals. In June the government initiated a consultation process in relation to a proposed statutory test for UK tax residency together with a fundamental review of the historically distinct concept of “ordinary residence”. That consultation process came to an end on 9th September 2011. We expect that the proposed changes will be incorporated into the Chancellor’s pre-budget report. We have summarised the proposals below but they are still complex. If you would like to discuss your circumstances, please contact your usual Beavis Morgan partner or Alan Ford.


Not resident in 3 previous years and here fewer than 45 days;
not resident in 1 out of 3 previous years and here fewer than 10 days;
leaving UK for full-time (35 hours minimum per week) work, and here fewer than 90 days with 20 or less on business.


183 days here;
only one home which is here (or two or more homes all here);
carry out full-time work here.

In between these absolutes

FIVE CONNECTIONS: Will be taken into account

Family – spouse and minor children resident.
Accommodation – available and used.
Substantive work – 40 days here.
Presence – 90 days here in previous year or one out of 2 preceding years.
Time – more spent here than in any other single country.


“Arrivers” “Leavers”
Less than 45 days here Non-Resident Less than 10 days
45 – 89 days Resident if 4 factors apply 10 – 44 days
90 – 119 days Resident if 3 factors apply 45 – 89 days
120 – 182 days Resident if 2 factors apply 90 – 119 days
Resident if 1 factor applies 120 – 182 days 90 – 119 days
183 days Resident 183 days