Skip to content

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

Priya was resident in the UK in the previous tax year. In the current tax year she spends 40 days in the UK and none of the automatic overseas tests or automatic UK tests is met. Using the table of days and ties for the statutory residence test, what is her residence status if she has 3 UK ties?

Priya is not resident. A previously resident individual spending 16 to 45 days in the UK is resident only with at least 4 UK ties. She has 3 ties, so the ties threshold is not met. The 3-tie threshold applies only to 46 to 90 days.

  1. ANot resident, because she needs 4 UK ties when she spends 16 to 45 days in the UKCorrect
  2. BResident, because 3 ties is enough where she spends 16 to 45 days in the UK
  3. CResident, because she was previously resident and so is automatically resident
  4. DNot resident, because she spent fewer than 91 days in the UK

Explanation

For a person previously resident, 16 to 45 days in the UK makes the person resident only if there are 4 or more UK ties. Priya has only 3 ties, so she is not resident. The 3-tie threshold applies to 46 to 90 days, which is why the second option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Income tax: the scope of income tax, residence and overseas aspects shows your real accuracy, how long you take and where you lose marks.

Practise Income tax: the scope of income tax, residence and overseas aspectsFree diagnostic mock

More Income tax: the scope of income tax, residence and overseas aspects questions