RDRM12230 - Residence: The SRT: Split year treatment: Case 6: The overseas and UK parts of the tax year

The overseas part of the tax year will be from the beginning of the tax year until the last day of the latest period for which the individual satisfies the sufficient hours test, when tested between the beginning of the tax year and that day.

The UK part of the tax year is the period from the end of the overseas part until the end of the tax year.

Example

Edward left the UK on 1 November 2010 to work full-time for a company based in Switzerland. Prior to this date he had always lived, worked and been resident in the UK. He has kept an apartment in the UK throughout his time in Switzerland; so he had a place to stay whenever visiting family in the UK.

Edward retires from his employment, his last overseas workday being 31 October 2014. He returns permanently to the UK on 3 November 2014, and takes up residence in his apartment. Edward also has an apartment in Switzerland which is up for sale, but until a buyer is found he continues to use it when he visits Switzerland.

Provided Edward did not exceed the limits for days spent working more than 3 hours in the UK, or days spent in the UK before the UK part of the tax year commenced (see table at RDRM12280), he will receive split year treatment under Case 6 for 2014-2015 as follows:

  • he is not resident in the UK for 2013-2014 tax year because he met the test for full-time work overseas for that year
  • From 6 April 2014 until 31 October 2014 he worked full-time overseas
  • he was UK resident for one or more of the 4 tax years (2009-2010, 2010-2011, 2011-2012, 2012-2013), before the year in which he was not UK resident (2013-2014)
  • he is resident for the tax year following his return to the UK, 2015-2016 tax year (he has retired permanently to the UK).

The overseas part of the tax year ends on 31 October 2014. This is the day that Edward finished his spell of working full-time overseas and the UK part of the tax year starts on 1 November 2014.