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

Hana, who was previously UK resident, works abroad and spends 40 days in the UK in the tax year. She has 3 UK ties, and no automatic test applies. What is her residence status under the statutory residence test table?

Hana is not resident. As a previously resident individual with 16 to 45 days in the UK, she would need 4 or more UK ties to be resident. She has only 3, so the test is not satisfied.

  1. AResident, because she needs only 3 ties for 16 to 45 days
  2. BNot resident, because she needs 4 UK ties for 16 to 45 days if previously residentCorrect
  3. CAutomatically not resident, because she spent fewer than 46 days in the UK
  4. DResident, because 3 ties are enough for any period over 15 days

Explanation

For a previously resident person, 16 to 45 days gives residence only if she has 4 or more UK ties. Hana has 3, so she is not resident. The automatic non-resident option is wrong because that outcome for 16 to 45 days applies only to those not previously resident.

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