819 Residence

Summary

This section provides that an individual is resident in the State for a tax year if the individual is present in the State for 183 days or more in that year (135 days if the tax year is the short tax “year” 2001), or for 280 days or more in aggregate in that year and the preceding year (244 days if the short tax “year” 2001 is included).

Details

Tests of residence

(1) The first and basic test is that a person is resident in any year in which they spend 183 days or more in the State. Where the time spent in the State in a year is less than 183 days (135 days in the case of the short tax “year” 2001), the second test comes into play. This is a 2 year test and involves taking account of a person’s presence in the State in the preceding year also. Thus, a person who spends 280 days or more in the State over the 2 years is regarded as resident in the State for tax purposes in the latter year (244 days if the short tax “year” 2001 is included).

Minimum presence

(2) Presence in the State for periods of 30 days or less in any year are to be ignored for the purposes of the 2 year residence test (22 days in the case of the short tax “year” 2001). An individual who is present in the State for 280 days over 2 years is normally regarded as resident in the State in year 2. However, if the individual is present in the State for 30 days or less in year 2, he/she is regarded as non-resident in that year. Thus, a presence of 240 and 40 days over years 1 and 2, respectively, will mean an individual is resident in year 2 while a presence of 250 and 30 days over years 1 and 2, respectively, will mean non-residence in year 2.

Option to elect

(3) An individual who would otherwise be non-resident can opt to be treated as resident for tax purposes, for example, in the year of his/her arrival in the State. The provision is conditional on the individual satisfying an authorised officer that he/she is not just in the State temporarily but is here with the clear intention of becoming a resident.

Presence for a day

(4) For the tax year up to and including the 2008 tax year an individual is present in the State for a day if he/she is present in the State at the end of the day, namely, at midnight. For the year 2009 onwards an individual is present in the State for a day if he/she is present in the State at any time during that day.

Relevant Date: Finance Act 2021