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

Mei was not resident in the UK in any earlier year. This tax year she spends 150 days in the UK and none of the automatic tests applies. She has 2 UK ties. What is her residence status for the year?

Mei is resident. A person not previously resident who spends 121 to 182 days in the UK is resident with 2 or more UK ties. She has exactly 2 ties, so the test is met. Fewer than 183 days does not prevent residence.

  1. ANot resident, because she needs 3 ties when she spends 121 to 182 days in the UK
  2. BNot resident, because she spent fewer than 183 days in the UK
  3. CResident, because with 121 to 182 days a person not previously resident is resident with 2 or more tiesCorrect
  4. DResident, because she is automatically resident from 121 days

Explanation

For a person not previously resident, 121 to 182 days makes the person resident if there are 2 or more UK ties. Mei has 2 ties, so she is resident. Spending fewer than 183 days does not by itself prevent residence, since the ties test applies.

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