The long awaited UK ‘Statutory Residence Test’

The draft ‘Statutory Residence Test’ legislation for individuals was issued in December 2012, shortly followed by a Guidance Note. With the rules coming into effect on 6^th April this year, individuals who may be affected should consider the impact on their circumstances as soon as possible, particularly in borderline cases.

There has been mixed reaction to the proposed rules, with acknowledgement that in many cases, the rules will at least make the determination of UK residence or non-UK residence definitive. However, despite some welcome changes to the original proposals, there is some disappointment that the anti-avoidance clauses make the draft legislation overly complicated and there is still a grey area of uncertainty affecting many individuals.

For more information, please don’t hesitate to contact us.