One Year Delay For New UK Statutory Residence Test

The Government's plan to introduce a new statutory residence test has been delayed by one year. Originally the new test was to have been effective from 6 April 2012. However, Exchequer Secretary to the Treasury, David Gauke, announced on 6 December 2011 that, in order to give the Government more time "to consult thoroughly on the detail of these changes well in advance of implementation", the new law is now set to come into force from 6 April 2013.

Tax practitioners and their clients have long been pressing for a statutory test of UK residence to replace the existing complex rules. The announcement by the UK Government in their March 2011 Budget that they would be introducing a statutory test of UK residence was therefore welcomed by tax advisers and their clients. It held out the promise of clarity in an important area of UK law which is currently subject to significant uncertainty.