New residence test

The Government proposes to introduce a new statutory residence test from 6 April 2013.  This will help to bring some clarity to this vague and complex area of law.  The test will supersede the existing law without transitional provisions. Draft legislation  will be published around the 2012 Budget.

The test will be in three parts.  Two parts will determine whether someone is either conclusively resident or non-resident.  The third part will apply if neither of these tests can be satisfied.  In this part, various connecting factors such as retaining a home here, having a resident family or working in the UK will be taken into account alongside the number of days spent in the UK.  It will be harder to lose UK residence status than to acquire it.

Those who consider themselves to be non-UK resident will need to reconsider their status under the new rules to see if they will still qualify as non-UK resident.

For further advice or assistance, please contact either Joseph Brown on 020 7516 2252 or email jbrown@littlejohnllp.com or Jonathon Collins on 020 7516 2226 or email jcollins@littlejohnllp.com