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HMRC internal manual

National Insurance Manual

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HM Revenue & Customs
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special cases: international - people going to or coming from abroad: row: meaning of "ordinarily resident" - factors to consider

Section 1(6) Social Security Contributions & Benefits Act 1992 Regulations 145, 146 and 149(2)(a) Social Security (Contributions) Regulations 2001

As explained in NIM33031, the words “ordinarily resident” are not defined in the above legislation. So whether a person is “ordinarily resident” is a question of fact and will depend on the particular facts of the case. So it is possible for someone to be “ordinarily resident” in two places at the same time.

In considering whether a person is “ordinarily resident”, you should:

  • take into account the following factors
  • in order to build up an overall picture of the person’s position.
  Factor Indication
     
1 Will the person be returning to Great Britain or Northern Ireland during the period of employment abroad? Yes - indicates ordinary residence continues during the period(s) abroad, especially the more frequent or longer the return visits.
No - indicates the person ceasing to be ordinarily resident.      
  2 What will be the purpose(s) of the return visit(s)? Visit(s):

to see family who have remained at the person’s home in Great Britain or Northern Ireland; and/or

as holidays spent at the home,

indicate ordinary residence.

If the visit(s) is in connection with the employment abroad, for instance, training, this is not such a strong indication of ordinary residence.      
  3 Will the person’s family - spouse/partner and/or children - be going abroad as well? Yes - indicates that the person is no longer ordinarily resident, especially if they do not maintain a home in Great Britain or Northern Ireland (see factor 4).
No - indicates ordinary residence continuing during period(s) abroad.      
  4 Will the person retain a home in Great Britain or Northern Ireland during their period abroad? Yes - indicates ordinary residence continuing during period(s) abroad.
No - indicates that the person is less likely to remain ordinarily resident.      
  5 If the person retains a home, will it be available for their use when they return? Yes - indicates ordinary residence continuing during period(s) abroad.
No - because, for instance, it is let on a long lease, then it is less likely that the person will remain ordinarily resident.      
  6 Will the person be returning to Great Britain or Northern Ireland at the end of the period abroad? Yes - indicates ordinary residence continuing during period(s) abroad.
No - indicates that the person is no longer ordinarily resident, especially if they do not retain a home in Great Britain or Northern Ireland during their absence abroad (see factor 4 above).      
  7 How long has the person lived in Great Britain or Northern Ireland? The longer the period, the stronger the indication that the person is ordinarily resident.

For guidance on the definition of “ordinarily resident” for tax purposes, see the Residence Manual.