Skip to content

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

Ravi has never been resident in the UK before. In a tax year he spends 100 days in the UK and has no automatic overseas or automatic UK residence test met. He has exactly two UK ties. Using the statutory residence test table in the ATX-UK tax rates and allowances, what is his residence status for that year?

Ravi is not resident. A person not previously UK resident who spends 91 to 120 days in the UK is resident only with three or more UK ties. He has only two ties, so the test is not met. The two-tie threshold applies only to previously resident individuals.

  1. ANot resident, because he needs three UK ties when he spends 91 to 120 days in the UK and was not previously residentCorrect
  2. BResident, because he has been in the UK for more than 90 days
  3. CResident, because he needs only two UK ties at 91 to 120 days
  4. DNot resident, because he spent fewer than 183 days in the UK and has no UK home

Explanation

For a person not previously resident, spending 91 to 120 days in the UK makes them resident only if they have 3 or more UK ties. Ravi has two ties, so he is not resident. The option that says two ties are enough applies the rule for someone who was previously resident.

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