On the 6th April 2013 the Statutory Residence Test was introduced by HMRC to determine the residence status of individuals with connections to the UK. Ultimately, the purpose of the Statutory Residence Test is to determine whether an individual is a resident in the UK for tax purposes. Some individuals may not initially fall within either of the two automatic tests when applying the Statutory Residence Test. These individuals are generally leavers or arrivers who will need to apply the Sufficient Ties Test to their specific circumstances. This test combines a mixture of day-counting (ie keeping a record of days spent in the UK) and the application of "UK ties". Put simply, the more UK ties a person has, the fewer days they can spend in the UK without becoming UK resident.
There are four ties which need to be considered:
- family tie
- accommodation tie
- work tie
- 90 day tie
The Sufficient Ties Test divides people into arrivers or leavers.