The Upper Tribunal has, for the first time, considered the meaning of ‘exceptional circumstances’ in the context of statutory residence – and it has set the bar extremely high, write Robert Waterson and Liam McKay (RPC).
The statutory residence test
FA 2013 s 218 and Sch 45 introduced the statutory residency test (SRT) replacing the previous common law test for determining tax residency. The basic rule under the SRT is that a person is resident in the UK for a year if either an ‘automatic residence test’ or a ‘sufficient ties test’ is met. The automatic residence test requires a person to meet none of the ‘automatic overseas tests’ set out in the SRT provisions and at least one of the ‘automatic UK tests’. Many of the automatic overseas tests depend on the number of days the person spends in the UK.
If the automatic residence test...
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The Upper Tribunal has, for the first time, considered the meaning of ‘exceptional circumstances’ in the context of statutory residence – and it has set the bar extremely high, write Robert Waterson and Liam McKay (RPC).
The statutory residence test
FA 2013 s 218 and Sch 45 introduced the statutory residency test (SRT) replacing the previous common law test for determining tax residency. The basic rule under the SRT is that a person is resident in the UK for a year if either an ‘automatic residence test’ or a ‘sufficient ties test’ is met. The automatic residence test requires a person to meet none of the ‘automatic overseas tests’ set out in the SRT provisions and at least one of the ‘automatic UK tests’. Many of the automatic overseas tests depend on the number of days the person spends in the UK.
If the automatic residence test...
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