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Posted Thu, 09 Dec 2021 14:47:55 GMT by ings
Under RDRM12010 (Statutory Residence Test), it states: Under the SRT, an individual is either UK resident or non-UK resident for a full tax year, and at all times in that tax year. However, if during a year the individual starts to live or work abroad, or comes from abroad to live or work in the UK, the tax year will be split into 2 parts, if their circumstances meet specific criteria: - a UK part for which they will be charged to UK tax as a UK resident - an overseas part for which, for most purposes, the individual will be charged to UK tax as a non-UK resident. Under the SRT an individual who is resident in the UK for a year is obliged to consider whether split year treatment applies to them. They must consider each of the cases of split year and decide if, in respect of each case, they meet all the conditions. If they meet all the conditions of one of the cases of split year it will be applied to them. The individual does not have a choice whether split year treatment applies. ------ During the "overseas part" of the tax year, while I understand that income relating to that part of the year is taxed as a UK non-resident, am I nevertheless considered a legal UK tax resident for the entire tax year?
Posted Mon, 13 Dec 2021 13:28:21 GMT by HMRC Admin 10
Hi

In order to claim split year you must first qualify as a UK resident for the tax year as a whole. 

Thankyou.

Regards.
Posted Mon, 13 Dec 2021 13:49:41 GMT by ings
Thank you for your reply, and I understand that. However my question was: if I qualify as resident for the tax year as a whole, and split year treatment applies to me (the guide states it is not a choice, it is based on circumstances), then does this make me a U.K. tax resident for just the U.K. part of the tax year only, and a non-U.K. tax resident for the “overseas” part of the tax year? Or am I considered as a U.K. tax resident for the entire tax year, but just having special tax treatment during that tax year? The question is relevant for overseas authorities who want to know my fiscal residence for a given period in time.
Posted Wed, 15 Dec 2021 09:20:57 GMT by HMRC Admin 17

Hi,
 
You are still a UK tax resident for the year but the income will be treated as if you are non UK resident for one part of the year
and Uk resident for the other part.

You must still be UK resident for the full year first to even qualify for split year. 

Thank you.
Posted Mon, 11 Apr 2022 11:11:55 GMT by wema
Following up on that; would HMRC emit a residency certificate or residency letter of confirmation stating that the person has been a UK tax resident for the whole year in question (including the overseas part of the year)? If so, when could this be requested? At any point in time once the residency criteria have been met for the tax year or at the end of the tax year (April 2023)?
Posted Wed, 13 Apr 2022 07:43:59 GMT by HMRC Admin 20
Hi bisaloa,

Please note that Certificates of Residence (or letters of confirmation of residence) issued by HMRC certify residence from the actual date of arrival in the UK.  

UK residence and tax

Thank you
Posted Sun, 17 Apr 2022 10:42:49 GMT by david
I've been UK tax resident for the past 8 years. I am planning to start working abroad on the 1st of August and I am not planning to return to the UK. According to the SRT, I will be UK tax resident for the current tax year 2022-2023. Upon leaving, I will fill the P85 form. If I requested a letter of confirmation by the end of this year 2022, would you confirm that I am a tax resident from 01/01/22 to 31/12/22 (assuming I request the letter of confirmation the 31/12/22), or the letter of confirmation will confirm the tax residency just for the period from 01/01/22 to 31-07-22 (the day I actually will leave the UK)? Thank you
Posted Mon, 18 Apr 2022 08:01:48 GMT by williamcfw chan
This is my first year in UK and I think I am a tax resident for 21/22. I will apply for split year treatment and I have foreign CGT which the gain is less than the personal allowance but the total capital trade amount requires me to report to HMRC. I need to file SA100, SA108, SA 109. My question is : do I file SA108 after my split year (SA109) is granted ( so that I dont have to report my income on foreign part) or do I simply summit all the forms and statement to HMRC in one go? Thank you
Posted Wed, 20 Apr 2022 10:55:03 GMT by HMRC Admin 17

Hi
 
iglewebs,
 
Please note that any certificate/letter of UK residence issued by HMRC would show the date on which you actually left the UK.

Thank you.
Posted Thu, 21 Apr 2022 07:36:03 GMT by HMRC Admin 20
Hi williamcfw chan,

As no Capital Gains tax appears to be payable, please submit all applicable pages of your tax return (SA108 included)  at the same time.

Thank you.
Posted Sun, 04 Dec 2022 21:49:22 GMT by david
Hi HMRC Admin 17, Thank you for your reply. I still don't understand why you wouldn't issue a letter confirming the UK tax residency with an end date after the departure date, which is within the tax year, when I am a tax resident according to the SRT for the whole tax year. Also, does the split year affect my condition as a UK tax resident within the context of a double taxation agreement (DAT)? For instance, the DAT between UK and USA says that the residency rules do not include any person who is liable to tax in a State in respect only of income from sources in that State. During the overseas part of the split year, I am only taxed on my UK income. Does it mean that I am not a tax resident in UK within the context of such tax treaties? Thank you.
Posted Wed, 07 Dec 2022 16:06:31 GMT by
Hi david,

!f you qualify for split year then you only report any foreign income for the UK part of the year
:
Residence, Domicile and Remittance Basis Manual

If you do not qualify then you will need to report all your foreign income to the UK:

Tax on foreign income

The guidance at RDRM12150 at www.gov.uk will help you work out if split year treatment applies. 

RDRM12150 - Residence: The SRT: Split year treatment: Case 4: Starting to have a home in the UK only

Thank you. 



 

 

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