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ACCA Strategic Professional · Advanced Taxation (UK) · Statutory obligations, time limits and the implications of non-compliance

Priya, who was UK resident in the previous tax year, spends 100 days in the UK in the current year and meets no automatic overseas or automatic UK test. She has exactly two UK ties. Using the statutory residence test table in the ATX-UK tax tables, what is her residence status?

Priya is UK resident. For someone previously resident who spends 91 to 120 days in the UK, the table makes them resident with two or more UK ties, and she has exactly two. The higher three-tie threshold applies only to those not previously resident.

  1. ANot resident because she has fewer than three UK ties
  2. BResident because 91 to 120 days with 2 ties makes a previously resident individual residentCorrect
  3. CResident only if she has at least four UK ties
  4. DAutomatically resident because she has been resident previously

Explanation

For a previously resident individual in the 91 to 120 day band, 2 or more UK ties make the individual resident. Priya has 2 ties, so she is resident. Three ties would be required if she had not been previously resident.

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