ARTICLE · 22 MARCH 2012

Statutory Residency Test

Deloitte

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The statutory residence test originally announced in Budget 2011 is to be implemented. No further details have been announced since the consultation document in December 2011, however the Government plans to publish draft legislation after Budget 2012 following the public consultation last year.

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Deloitte Tax Group

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The statutory residence test originally announced in Budget 2011 is to be implemented. No further details have been announced since the consultation document in December 2011, however the Government plans to publish draft legislation after Budget 2012 following the public consultation last year.

Who will be affected?

Individuals who spend time in the UK or who are looking to leave the UK.

When?

The Government will legislate the statutory definition of residence in Finance Bill 2013, taking effect from 6 April 2013.

Our view

The current rules that determine tax residence for individuals are unclear and complex. This has been demonstrated in a number of recent high profile tax cases. A statutory residence test for individuals will provide greater clarity.

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