The Statutory Residence Test Explained

For British expatriates, or those spending a significant period of time overseas, the issue of residence is an important topic. Simply moving abroad to avoid UK tax is an outdated concept, and in recent years careful attention has been focused on those wanting to adopt or maintain non-resident status.

The Statutory Residence Test was established by the UK’s tax body – HM Revenue and Customs – to provide a framework of who qualified for non-resident status. Those awarded this status fall outside of the UK’s tax system, and generally do not have to pay Income Tax or Capital Gains Tax.

Despite the Statutory Residence Test there remain certain areas of the new rules that can be easily misunderstood and difficult to interpret. In 2013, new rules also came into force governing statutory residence.

The Fry Group works with clients to provide clarity to the rules, helping each individual to determine their non-resident status in the light of current legislation. Contact us for further information and assistance.

The information on this website aims to provide a breakdown of the main structure of the new rules to help you at least start to understand your position.  However, this is not intended to form professional advice nor should it be relied upon as such.  The new legislation is complex and before taking any particular action, specific and personal advice should be obtained.

  • Statutory Residence Test Guide

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