The much rumoured Statutory Residence Test has not been included in the subjects for inclusion in the 2012 Finance Bill. The government has indicated that the draft proposals are likely to be included in the Finance Bill 2013.
However, a lot can happen in that period and therefore it cannot be certain that the Bill will be introduced at all, or that any new rules will be enacted in the form presently envisaged. This uncertainty is not particularly helpful. Anyone considering their UK tax residence position will now have to continue relying on the uncertainties of case law and HMRC’s disputed interpretation in booklet HMRC 6. This is likely to lead to a number of other disputed cases, such as the recent well-known Gains-Cooper case.
In the meantime the tests for UK residence remain unchanged, albeit ambiguous and lacking complete certainty. This is a complex area where many people require specialist advice.
Lynam Tax domicile specialists have decades of experience in dealing with tax residence and domicile issues.
*Call Paul Lynam today for an initial free, confidential, no obligation, discussion: 0845 643 9997
or Andrew Nutbrown on 07718 778710