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  • Statutory Tesidence Test - Clarification of Sufficient Ties Test

    The HMRC Guidance for the Statutory Residence Test is an excellent interpretation of the original extremely confusing 2013 Finance Act legislation. There is, however, one part of the Guidance where further clarification would be very helpful and that is the part that says: 4. Sufficient ties test Use the sufficient ties test to work out your UK residence status for the tax year if you do not meet either any of the: • automatic overseas tests • automatic UK tests I would like to offer the following amended version that I feel clarifies this important step: You do not need to use the sufficient ties test to work out your UK residence status for the tax year if either: • you meet any of the automatic overseas tests or • you do not meet any of the automatic UK tests I would be very interested to know if my proposed amended version correctly interprets these requirements even if you believe that such amendment is not justified.
  • RE: HMRC document “RDRM10225 - Residence: Coming to the United Kingdom: Residence status

    Many thanks for answering my question. I now have a follow up question. RDRM 10225 sets out a number of circumstances that in the case of an arriving individual meeting all of them then that individual will be resident and ordinarily resident from the day of arrival. I would like to make an enquiry about the case where an arriving individual does not meet all of these circumstances such, as for instance (and specifically), the individual’s annual number of visit days to the UK days during the 4 years prior to the year of arrival exceed 91 days. RMDM10225 just states that: “If the individual does not meet all the conditions issue a code number with full personal allowances on a week1/month1 basis”. This reference to “week1/month1” seems to imply that it is assumed that the arriving individual is or will be going on to a UK payroll and paying taxes by PAYE. My question is: What happens in the case of a returning retired individual who has been permanently living abroad for several years arrives in the UK on 6th April with the intention of staying permanently in the UK, whose retirement income is almost entirely sourced from abroad, who assumes that he or she will be classified as resident and ordinarily resident and proceed to register for Self-Assessment but who does not meet the average 4 year 91 visit day criteria? Should this individual anticipate or prepare for any further requirements from HMRC?
  • HMRC document “RDRM10225 - Residence: Coming to the United Kingdom: Residence status

    The current HMRC document “RDRM10225 - Residence: Coming to the United Kingdom: Residence status” is for the purpose of determining the tax residence status of a previous resident in the UK upon returning to the UK after a period of being abroad. This determination is based on the length that the individual has been absent and the average number of days per year that he or she has spent in visits to the UK during the four years immediately before the year of arrival. The document starts by describing the returner as an “individual” but later identifies the individual as someone who has “worked” while being abroad. My question is: Can it be assumed that this document essentially applies to all types of returning former residents and thus would include retired individuals?
  • Retiree Returning to the United kingdom

    I am a retired former UK resident who has been living outside the UK for several years. I am contemplating returning to the UK at some time in the future. Residency status after returning is fully addressed in RDRM10225 for people who have been working outside the UK but I can't find anything similar for returning retired persons. Can I assume that as a retiree RDRM10225 would also apply to me?
  • IHT threshold on UK estate when owner lives and dies abroad

    When the owner of UK assets dies abroad the only liability for paying IHT is on the deceased's UK assets. My question is: Can the standard threshold (for example GPB 325,000) be applied to the valuation of his/her estate for the purpose of establishing the IHT to be paid?