HMRC has launched a new tool to help taxpayers determine their tax residence status. The tool can be used from 2016/17 onwards up to the current tax year 2022/23.
According to HMRC, the tool is suitable for most taxpayers if their circumstances are straightforward. The tool applies the following three tests under the Statutory Residence Test legislation to determine an individual’s residence for tax purposes:-
- the automatic overseas tests;
- the automatic UK tests; and
- the sufficient ties tests.
More detailed guidance on the SRT is available in RDR 3 and in HMRC’s manuals from RDRM11000 onwards.