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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Residence: Particular Occupations: Students

If an individual’s home has been abroad and they have come to the UK for less than two years for a period of study or education, they might not be resident in the UK (see RDRM10200 coming to the UK and HMRC6 paragraphs 7.4 and 7.5). If the individual has come to the UK for more than two years but less than four years for study or education, they will be resident in the UK while they are here.

But an individual will not usually be ordinarily resident if:

  • they do not own or buy accommodation here
  • they do not acquire accommodation here on a lease of three years or more
  • when they leave the UK they do not plan to return here regularly for visits which average 91 days or more in a tax year

If, while studying in the UK, an individual gets a job to help support themselves, they might have to pay UK tax on their earnings. This is because the earnings are from a UK source and are liable to UK tax whether or not they are resident in the UK. How much tax they have to pay will depend on the amount they earn during the tax year. The individual may be entitled to UK personal tax allowances (see RDRM10300 onwards) which would reduce the amount of any UK tax they have to pay.

The UK has entered into Double Taxation Agreements with many countries that provide special rules for students who come to the UK to study, or go from the UK to study abroad. Under these rules certain income is not taxable in the country of study if it is only for the maintenance and education of the student.

If you have any problems regarding the residence status of the individual please either

  • E-mail - SPT, PTI Advisory, Residence & Domicile Technical Team Mailbox

or, submit your enquiry to

  • Specialist Personal Tax, PTI Advisory

Residence & Domicile Technical Team
St Johns House
Merton Road
Bootle
Merseyside
L75 1BB