UK Resident and Habitually Resident

Published / Last Updated on 13/12/2018

ResidencyUK Resident and Habitually Resident Rules

For most countries, including the UK, you are resident if you live in that country for 183 days or more in a given tax year.  But from 2013, the UK issued a whole new set of rules concerning residency, days in the UK, housing and families ties:  The Statutory Residence Test.

Resident for tax is different under UK law to your Domicile (which decides whether you are subject to UK Inheritance Taxes on Worldwide Assets - not just your UK assets).

The UK tax year runs from 6 April to 5 April in the following calendar year.  For many other countries, the tax year is 1 January to 31 December.   Some countries, not many, have other dates.

UK Residency - Means being subject to UK Income Tax

  • If you are resident in the UK, you are subject to UK taxation laws.
  • If you are not resident but have assets in the UK, those assets are subject to UK taxation laws.
  • The days of arrival and departure are generally ignored, although a ruling in 2006 said that the day of arrival and departure should be counted as one day in total.
  • The number of days you spend in the UK are accumulated over the year and if you reach 183 days, you are resident in the UK for tax purposes.
  • If you arrive with the intention of staying in the UK for more than 183 days, you are resident for income tax purposes on day one.

Residency test for days that do not count: If you are in the UK at Midnight on any given day, this counts towards the numbers of days as a resident.  Days that you are in transit, even if say you land in the UK pass through passport control and get on a train and then a ferry two days later to another country do not count, provided the only reason you were here was that you are in transit.

Moved Overseas?  Working Overseas? 

  • This does not mean you are not liable to income tax in the UK. 
  • You still may be classed as ordinarily resident or habitually resident in the UK meaning your income overseas is subject to UK Income Tax.

2013 - The New Statutory Residence Test

Starting from April 2013, HMRC has issued new tests to confirm whether you are considered resident in the UK for tax, an overseas resident or indeed if there are "tie breakers" on a points system if you maintain sufficient ties with the UK.

Speak to an adviser and find out about residency rules and your liability to UK taxes.

UK Resident and Habitually Resident