RDRM32530 - Remittance basis: Accessing the remittance basis: Temporary non-residents and relevant foreign income: Temporary non-residents - changes from 2013-2014 tax years

With the introdution of the Statutory Residence Test (SRT), and the repeal of ITA03/s832 being replaced by FA2013 Sch 45 Part 4 para 110, the conditions for temporary non-residence have also changed.

Individuals will be regarded as temporarily non-UK resident if:

• following a residence period where they had sole UK residence, one or more residence periods occur for which the individual does not have sole UK residence
• at least 4 out of the 7 tax years immediately preceding the year of departure were either:
  • a tax year for which the individual had sole UK residence
  • a split year that included a residence period for which the individual had sole UK residence
• the temporary period of non-UK residence is 5 years or less.

For the purposes of temporary non-residence a ‘residence period’ for an individual is:

• a full tax year
• if a split year, either the overseas part or the UK part of that split year

An individual will have sole UK residence for a residence period if they are resident in the UK for that entire year, and there is no period within that year when they are Treaty non-resident.

If the year is a split year, the individual will have sole UK residence if in the UK part of the split-year there is no period in that time when they are Treaty non-resident.

An individual will be Treaty non-resident if they are regarded as resident in a foreign territory for the purposes of double taxation arrangements in effect at that time.

Where an individual uses the remittance basis and remits relevant foreign income to the UK during a period in which they are temporarily non-resident, they will be treated as having remitted their relevant foreign income to the UK in the period they return.