New statutory residence test

HMRC have published guidance to help people decide if they are resident in the UK for the purposes of paying tax report Northampton based chartered accountants Harris & Co.

It follows legislation introduced in the Finance Bill 2013 on the rules which determine an individual"s tax residence on a statutory basis.

The rules that determine if someone is resident in the UK for tax purposes - the Statutory Residence Test (SRT) - changed from 6 April 2013.

For the majority of people, whether or not they are resident for tax purposes is quite straightforward under the test and their position will not change. For those with complex circumstances the SRT will provide more certainty about their residence status.

In addition, HMRC will be launching an on-line residence indicator soon, which will provide individuals with an indication of their residence status after answering a few straightforward questions. The current HMRC6 booklet will also be replaced by a new version to reflect changes to the remittance basis of taxation and the introduction of the SRT.

More details are available from HMRC.