RDRM12810 - Residence: The SRT: Tranisitional provisions: Use of the SRT to determine residence status for tax years before 2013-2014

If an individual is considering their residence status for the tax years 2013 to 2014, 2014 to 2015, 2015 to 2016, 2016 to 2017 or 2017 to 2018, under the automatic overseas test or the sufficient ties test of the SRT they will need to know their residence status for 1 or more of the 3 tax years prior to 2013 to 2014, (pre-commencement tax years). They may also need to know this to determine whether split year treatment is due.

The normal position is that an individual’s residence status for a pre-commencement tax year is determined by the rules that applied in that year, and which are explained in HMRC’s booklet HMRC6 – Residence, domicile and remittance basis.

However, for the purposes of determining their UK residence status in the tax years 2013 to 2014 through to 2017 to 2018, (or the application of the split year rules to those years), an individual can elect to determine their residence status for a pre-commencement tax year by reference to the SRT rules.

An election applies only to a pre-commencement tax year, and solely for the purpose of determining an individual’s residence status for tax years from 2013 to 2014 through to 2017 to 2018. It will not change an individual’s actual tax residence status for the year(s) to which the election applies, nor does it affect their tax liability in those years.

An election may be made whether or not an individual’s actual residence status for a pre-commencement year has been determined.

If the individual’s residence status for a pre-commencement year has not been settled, then making an election may enable them to determine their residence status for 2013 to 2014, or a later year under the SRT, without waiting for the position for the earlier year to be finalised