HMRC internal manual

Residence, Domicile and Remittance Basis Manual

RDRM11140 - Residence: The SRT: Third automatic overseas test

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If an individual works sufficient hours overseas in the relevant tax year this test will be met.

To meet this test certain conditions must be satisfied:

  • the individual works sufficient hours overseas in the relevant tax year (refer to RDRM11150)
  • during the year there are no significant breaks from overseas work
  • the number of days in the relevant tax year on which the individual does more than 3 hours work in the UK is less than 31
  • the individual spends less than 91 days in the UK in the relevant year

The phrase ‘relevant year’ means the whole of the tax year that is being considered.

Example

Alex leaves the UK to work full-time abroad on a 2 year contract. He starts his new job in Dubai on 1 March 2015, the contract finishes on 28 February 2017. Alex arrives back in the UK on 1 March 2017 and does not take up his new employment in Saudi Arabia until 7 April 2017.

Alex needs to see whether he meets the sufficient hours criteria - specifically whether he has had a significant break - as if he has he would not meet the conditions for this test.

As Alex has not worked overseas in the period 1 March to 5 April 2017, a period of 36 days, he will have a significant break from overseas work and will not meet the third automatic overseas test. Alex will need to check the remaining automatic overseas tests to see if he meets these.

 

This test will not apply if the individual has a job on board a vehicle, aircraft or ship at any time during the relevant tax year; and at least 6 of the trips made in that year as part of their job are cross-border trips. That is a trip which:

  • begins in the UK
  • ends in the UK
  • begins and ends in the UK

For further information on relevant jobs see RDRM11780