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

Priya has been resident in the UK for many years. In the tax year she spends 100 days in the UK, and she is not automatically resident or automatically non-resident on any other test. She has exactly two UK ties. Using the tax table for residence status, what is her residence position for the year?

Priya is UK resident. She was previously resident and spent 91 to 120 days in the UK, so the table makes her resident with 2 or more UK ties. She has exactly two, so the test is met.

  1. AResident, because she was previously resident and has 2 UK ties with 91 to 120 days in the UKCorrect
  2. BNot resident, because she needs 3 UK ties when she spends 91 to 120 days in the UK
  3. CNot resident, because she spent fewer than 183 days in the UK
  4. DResident, because she needs only 1 UK tie when she spends 91 to 120 days in the UK

Explanation

For a person previously resident, 91 to 120 days in the UK makes them resident if they have 2 or more UK ties. Priya has 2 ties, so she is resident. The 3-tie requirement applies only to someone not previously resident.

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