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Posted Wed, 07 Jun 2023 08:47:28 GMT by Herrero
Dear Sir / Madam, Regarding RDRM12150 Split Year Case 4, a requirement is that the tax payer is ''starting to have a home in the UK only''. In the explanation it says: "They must: ... ... not meet the only home test at the start of the tax year, but at some point in that tax year they do meet the only home test and continue to do so until the end of that tax year." If I have had a home available to me overseas and one in the UK for many years before the beginning of the year in question, and cease to have a home overseas in the year in question before taking up residence in the UK, I meet the only home test. Other requirements for Case 4 concern residence in the year in question and the year before, and the split ties test. Assuming that these are also satisfied, does this meet the Case 4 conditions? Thank you
Posted Wed, 07 Jun 2023 14:22:33 GMT by HMRC Admin 10
Under Case 4, you can have the UK home at the start of they year along with another property.
It is Case 8 that stipulates you cannot have a UK home at the start of the year.
Posted Thu, 08 Jun 2023 09:11:33 GMT by Herrero
Thank you! Very helpful and clear.
Posted Thu, 08 Jun 2023 15:03:06 GMT by HMRC Admin 32

Yes. As long as you no longer have the overseas property.

Thank you.
Posted Thu, 14 Sep 2023 19:24:20 GMT by Sabrina Ng YY
Hi, I am still confused, if I purchased UK property prior I arrived to UK on 28 Dec, the property was completed on 31/July. 1) Should the cut off line of split years be 28 Dec or 31 July? Given I only start living in the apartment on 28 Dec and will be my home when I live in. If case 4 applies to no longer have overseas property, but legally my previous home was still under my name legally under the process of transaction from Dec to March, Should i fall into case 8? I am unsure 2) I am confused at falling into case 4 or case 8 of split years, I have sold my home in HK on15 Dec, temporary contract had been signed but not completed and the disposal of my previous main home completed in March, From 28 Dec onwards, I have been living in UK home but before 28 Dec. I left my HK home on 2 Dec and stayed in hotel until I depart for UK. 3) I assume that the split years start at 28 Dec, because it is the time I start my home in Uk, all gains after 28 Dec will be accountable to UK tax, However, I am unsure about the interest gain issue, if the interest placement is filed before I arrive UK, but matures on or after 28 Dec, should the taxable interest gain count on the mature date or the placement date or count on pro rata? Thanks Best Regds
Posted Fri, 22 Sep 2023 14:30:52 GMT by HMRC Admin 25
Hi Sabrina Ng YY,

On the basis of the information provided, you would meet the criteria for Case 8, and the UK part of the split year would commence on 28 December.
As regards your point about interest, any interest received between 28 Dec 2022 and 5 April 2023 should be declared in your 2023 Self Assessment Tax return.        
RDRM12030 - Residence: The SRT: Split year treatment: When will split year treatment apply
Thank you. 

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