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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: the scope of the taxation of capital gains

Priya has never been resident in the UK before. In a tax year she spends 100 days in the UK, and none of the automatic overseas tests or automatic UK tests applies to her. She has exactly two UK ties. Applying the statutory residence test table for individuals not previously resident, what is her residence status for that year?

Priya is not UK resident. A person not previously resident who spends 91 to 120 days in the UK is resident only with three or more UK ties. She has only two ties, so the threshold is not met and she is non-resident for the year.

  1. ANot resident, because she needs at least three UK ties when she spends 91 to 120 days in the UKCorrect
  2. BResident, because any individual with two UK ties is resident
  3. CResident, because she spent more than 90 days in the UK
  4. DNot resident, because she spent fewer than 183 days in the UK

Explanation

For an individual not previously resident, 91 to 120 days in the UK makes her resident only if she has 3 or more UK ties. She has two, so she is not resident. Option B applies the previously-resident threshold. The 183-day test is automatic residence only and does not mean everyone below it is non-resident.

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