Anyone wanting to claim that they are non-UK resident is likely to have to get much better at keeping records of their time spent in the UK.
The new statutory residence test replaces a mixture of statute, practice and case law to determine UK residence for individuals from April 2013 onwards. It uses a series of flowchart-type tests to establish firstly whether the person is automatically resident overseas or automatically UK resident. For other cases that don’t fit neatly into either category, the new rules establish residence status by looking at various levels of tie to the UK in combination with physical presence here.
While the new regime should mean that taxpayers find it easier to get certainty about their status, the onus will be on the taxpayer to provide evidence to support their non-UK residence claim. HMRC will be able to ask for detailed records of days, and in some cases, hours spent in the UK.
Lubbock Fine can advise on residence issues and record-keeping to support a claim. Contact Clare Munro or Phil Moss on 020 7430 7766 or firstname.lastname@example.org.