101 Ideas For TOP QUALITY RESIDENCES

The government is proposing new rules that come to effect from 6 April 2013 that may put UK residence for tax purposes on a statutory footing, instead of relying on HMRC guidelines and case law. In principle that is a sensible move and will provide certainty for anybody unsure at present whether they qualify as being non-resident in the UK for tax purposes. However the rules are complex and have attracted some criticism because of this.

Under the current rules you’re resident in the UK in the event that you spend 183 days or more in the UK and you could be resident if you spend more than 90 days on average. Beneath the new rules you will have no more four-year average and when you spend more than 3 months in the UK in virtually any tax year you will always be regarded as resident. As before, you should be away from the united kingdom for a complete tax year in order to qualify as non-resident and each day counts as being a day on the UK for anyone who is at midnight on that day.

However, the new law is generally designed to leave a lot of people in exactly the same position as previously which means you are unlikely to find your situation suddenly altered. It is vital though that you understand the new test of residence and non-residence. You can find three parts of the test that have to be considered in order. In other words, for anyone who is definitely non-resident on the basis of Part A, then you don’t have to consider parts B and C.

So, we think the majority of our clients should be still covered by the provision in Part A that you are non-resident when you have left the UK to handle full-time work abroad and are present in the united kingdom for less than 91 days in the tax year and no a lot more than 20 days are spent working in the UK in the tax year. Here though are the three parts of the test.

Part A: You’re definitely non-resident if:

You were not resident in the UK for the previous 3 tax years and within the UK for under 46 days in today’s tax year; or You were resident in the UK in a single or more of the previous 3 tax years but within the UK for less than 16 days in today’s tax year; or You have gone the UK to carry out full-time work abroad and provided you’re present in the united kingdom for fewer than 91 days in the tax year no a lot more than 20 days are spent working in the united kingdom in the tax year. Training covered by your employer and used the UK will undoubtedly be considered work and this will undoubtedly be extracted from your 20 day working allowance.

Part B: You’re definitely resident if:

You are present in the united kingdom for 183 days or more in a tax year; or You have only one home and that home is in the united kingdom or have significantly more homes and all of these are in the united kingdom; or You perform full-time work in the united kingdom.

Part C: If your situation is not described in Parts A and B you then need to compare the quantity of days spent in the united kingdom against a small number of clearly defined connection factors. These connection factors are as follows:

Family- your partner or civil partner or common law equivalent (provided you are not separated from their website) or minor children are resident in the UK. Accommodation – you have accessible accommodation in the united kingdom and employs it through the tax year (at the mercy of exclusions for some forms of accommodation). Substantive work in the united kingdom – you do substantive work in the united kingdom i.e. more than forty days in the tax year but do not work full-time in the UK. UK presence in previous years – you spent more than 90 days in the united kingdom in either of the prior two tax years and you also spend more days in the united kingdom in the tax year than in any other single country.

These connection factors are then coupled with day counting to determine whether you’re resident or non-resident. There are two categories, arrivers and leavers.

If you weren’t resident in any of the previous three tax years – ‘Arrivers’:

Fewer than 46 days in UK: Always non-resident. 46 – 3 months: Resident if 4 or more connection factors. 91 – 120 days: Resident if 3 or more connection factors. 121 – 182 days: Resident if 2 or even more connection factors. 183 days or even more: Always resident.

If you were resident in a single or more of the three tax years immediately before the tax year in mind – ‘Leavers’:

Fewer than 16 days in UK: Always non-resident. 16 – 45 days: Resident if 4 or more connection factors. 46 – 90 days: Resident if 3 or more connection factors. 91 – 120 days: Resident if 2 or more connection factors. 121 – 182 days: Resident if you can find 1 or even more connection factors. 183 days or even more: Always resident

When the Finance Bill is produced there might be some changes to the legislation and more detail may emerge, but there’s been considerable consultation and it is sensible to prepare for the new rules now. If this is relevant to your situation you need to take professional advice to make sure you do not fall foul of the brand new legislation. Ki Residences Sunset Way