1 . Introduction This guide highlight certain UK tax issues that a non- UK domiciled individual considering of becoming resident in the UK and how remittance work . This a very complex subject and strongly record for expert , tailored tax advice to be taken prior to become resident in the UK .
2 . UK resident The basic structure of determining UK residency consists of three tests :
1 . Automatic non-UK resident test 2 . Automatic UK resident test 3 . Sufficient ties test Under automatic UK residence test , individual is automatically resident in the UK if the individual :
a ) spends at least 183 days in the UK in the tax year
b ) has a home in the UK which is available for a period of 91 consecutive days or more ( at least 30 of which must fall within the tax year ), and that home is actually used for at least 30 days in the tax year and they either have no overseas home ( s ), or , if they do , they spend fewer than 30 days in any overseas home in the tax year ( the ’ 30-day test ’)
c ) The individual works full-time in the UK for any 365- day period , part of which falls in the tax year ( with no significant breaks and subject to various conditions ).
The automatic test is summarised below :
1 . Did you spend 183 days or more in the UK in the tax year ?
No
2 . Did you spend less than 16 days in the UK in the tax year ?
NO
3 . Were you non-UK resident in all three preceding tax years and did you spend less than 46 days in the UK in the tax year ?
NO
Yes
Yes
Yes
You are UK resident
You are non-UK resident