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Posted Fri, 04 Nov 2022 10:39:11 GMT by Bernard Martin
Hi, I understand that there is a preferential order for assessing split year eligibility (Case 1 then Case 2 then Case 3). In my case, I would not meet the criteria for Case 1 (as I will not have a significant break from overseas work during that period so I fail the ability to be non-UK resident in the following tax year, because I fail to meet the third automatic overseas test) - as I will be taking a sabbatical during the next tax year. However in my case, I will cease to have a home in the UK during the current tax year (house is being rented for the period) and I will not be back in the UK for more than 16 days during the remainder of this tax year. And I will meet the 1st automatic overseas test in the next tax year (as I was resident in the UK for one or more of the 3 tax years before the current tax year, and I won't spend fewer than 16 days in the UK in the tax year). On this basis, could someone confirm that I would qualify for split year tax accounting for this tax year (on the basis of Case 3, even though I fail Case 1) and I meet the requirement to be non-UK resident for the next tax year (as I will spend less than 16 days in the UK for the next tax year)? Thank you
Posted Wed, 09 Nov 2022 11:46:55 GMT by HMRC Admin 32

You are expected to make an informed decision having read the guidance, and peformed the tests.

If you are having difficulty in making the decision, you may need to consider seeking the advice of a financial adviser.

Thank you.
Posted Wed, 09 Nov 2022 12:52:10 GMT by Bernard Martin
Thank you, I have read the guidance and performed the test. My question is just a clarification that Case 3 can apply even if Case 1 fails. Thank you
Posted Mon, 14 Nov 2022 21:43:41 GMT by HMRC Admin 18

Under Residence, Domicile and Remittance Basis Manual, the guidance states that if an individual’s circumstances fall within more than 1 case of split year criteria then the cases must be considered following a priority ordering rule. This determines both the case of split year that applies as well as the date that the year will be split from. Case 1 has priority over case 3 and as such if you do not qualify under case 1 then you cannot apply case 3.

Thank you.


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