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Updated Statutory Residence Test guidance

HMRC has updated its RDR3 guidance on the Statutory Residence Test (SRT).

Ian   Holloway
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Ian   Holloway
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HMRC has updated its RDR3 guidance on the Statutory Residence Test (SRT).


The SRT was introduced in Finance Act 2013, effective 2013-14 tax year, following a change to the rules on UK tax residence. The SRT determines whether an individual is resident or is not resident for UK tax purposes. It is complicated, but very simply, there are two levels to the test:


1. the automatic UK residence tests (which includes the ‘sufficient UK ties’ test); and
2. the automatic overseas tests.


The RD3 provides information about the SRT and how HMRC interprets the legislation in the context of applying the SRT to an individual’s circumstances. If you want to know how the updated guidance differs from that first published in June 2014, see page 7.


Employers can also use HMRC’s Tax Residence Indicator tool, which can be accessed from the Tax on foreign income page. Note that HMRC will not be bound by the results of this tool where the information provided does not accurately reflect the facts and circumstances.


Therefore, I would really recommend referring to the actual legislation which is contained in Schedule 45 of Finance Act 2013.

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