HMRC internal manual

International Manual

Double Taxation applications and claims: applicants/claimants - individuals: Residence and ordinary residence

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

When dealing with an application/claim from an individual, you will need to consider their UK residence position.

The two terms, residence and ordinary residence, are not defined in the Taxes Acts.

  • ‘Residence’ is related to actual physical presence in the UK during the income tax year.
  • ‘Ordinary residence’ is related to a way of life where the individual shows an intention to live in a particular country in accordance with his/her habit of life. The factors which may be taken into account are choice, purpose, duration of stay and previous history. Broadly speaking it is equivalent to residence year after year.

The UK’s DTAs with other countries refer to residence, so it is the residence status of the individual that is relevant for applications and claims under a DTA. The ordinary residence position is relevant only for claims to repayment of UK income tax deducted from payment of interest on ‘FOTRA’ securities. See INTM368000.

There is more information in the Residence, Domicile and Remittance Basis Manual (RDRM).