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HMRC internal manual

International Manual

Double Taxation applications and claims: applicants/claimants - individuals: The double residence ‘tests’ in DTAs and what to do if you have a case of double residence

Where an individual is a resident of both the UK and the other country, then the individual’s status for the purposes of the particular DTA will be determined by a series of rules, or ‘tests’ that are in many (but not all) DTAs. For more about the variations between different DTAs, see INTM334540.

Clearly, it is essential to refer to the text of the relevant DTA when considering whether an individual may be resident both in the UK and the other country. Where a DTA contains double residence ‘tests’, they usually appear in Article 4.

Below is an example of the main tests. The exact wording will be in the text of the relevant DTA. The first test is often sufficient to determine the country in which the individual may be deemed resident for the purposes of the DTA. If however the country of residence for the purposes of the DTA cannot be determined under the first test, then the second test is applied and so on.

  1. The claimant shall be deemed to be a resident only of the country in which he has a permanent home available to him; if he has a permanent home available to him in both the UK and the other country, he shall be deemed to be a resident only of the country with which his personal and economic relations are closer (centre of vital interests).
  2. If the country in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either country, he shall be deemed to be a resident only of the country in which he has an habitual abode.
  3. If he has an habitual abode in both countries or in neither of them, he shall be deemed to be a resident only of the country of which he is a national.
  4. If he is a national of both the UK and the other country or of neither of them, the competent authorities of the UK and the other country shall endeavour to settle the question by mutual agreement.

Cases of double residence

If you have a DT claim or application from an individual who appears to be resident in both the UK and the other DT country, refer to Specialist Personal Tax, PT International Advisory before opening an enquiry or requesting more information.