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ACCA Strategic Professional · Advanced Taxation (UK) · Income tax: the scope of income tax, residence and overseas aspects

Grace was not previously resident in the UK. She spends 60 days in the UK this tax year and no automatic test applies. She has 3 UK ties. Which statement is correct?

Grace is not resident. For an individual not previously resident, 46 to 90 days in the UK makes her resident only with 4 UK ties. She has 3 ties, so the test is not met. The 3-tie threshold applies only to previously resident individuals.

  1. AShe is not resident, because a person not previously resident needs 4 ties for 46 to 90 daysCorrect
  2. BShe is resident, because 3 ties is enough for 46 to 90 days
  3. CShe is automatically not resident, because she was not previously resident
  4. DShe is automatically resident, because she spent more than 45 days in the UK

Explanation

For someone not previously resident, 46 to 90 days makes the person resident only with 4 UK ties. Grace has 3 ties, so she is not resident. The 3-tie threshold applies to previously resident individuals at those day counts. The automatic non-resident rule for this group applies only to 16 to 45 days or fewer.

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