Scope of Income Tax Flashcards
Difference between UK resident and non-UK resident for scope if income tax?
UK resident is taxed on worldwide income
Non-UK resident is liable to UK income tax only on income arising in the UK
What does statutute set out?
Tests to determine whether or not an individual is UK resident in a tax year
When an individual satisfies any of the automatic overseas tests?
They are a non-resident
When an individual satsify any of the automatic UK tests?
They are a UK resident
When an individual doesn’t satisfy any of the automatic UK tests but they satisfy the sufficient tiest test?
They are a UK resident
If an individual satisfies none of the tests?
They are a non-resident
When does an individual automatically not qualify for a UK resident for the whole tax year?
Less than 16 days in UK during the tax year
Spend less than 46 days in UK during a tax year AND were not resident during the previous 3 years
Work full time overseas during tax year AND spend less than 91 days in UK during that tax year
When will an individual automatically be a Uk resident
They are in UK for 183 days or more during a tax year
Their only home is in the UK
The carry out full-time work in UK during that tax year
What is sufficient ties test?
Number of ties they have with the UK and how many days they are present in the UK in a tax year
Ties to the UK?
Close family in UK
Accomodation in UK where individual spends at least one night during tax year
At least 40 days working at least three hours a day
Being in UK more than 90 days during either of two previous tax years
Spending more time in UK than in any other country in tax year
What is meant by day in UK tax?
A day in the UK is any day in which an individual is present in the UK at midnight
Less than 16 days in the UK?
Previously resident: Not resident
Not previously resident: Not resident
16-45 days in the UK?
Previously resident: Resident if 4+ UK ties
Not previously resident: Not resident
46-90 days in the UK?
Previously resident: Resident if 3+ UK ties
Not previously resident: Resident if 4 UK ties
91-120 days in the UK?
Previously resident: Resident if 2+ UK ties
Not previously resident: Resident if 3+ UK ties
