WTTG4300 - Test Bi - 'close connection' to Wales - single place of residence

N.B. In order for an individual to be a Welsh taxpayer, they must be UK resident for tax purposes – an individual who is not UK tax resident cannot be a Welsh taxpayer.

Where an individual has just one place of residence in the UK in the course of a tax year and that place of residence is in Wales, they will have a “close connection” to Wales and be a Welsh taxpayer for that tax year.

Where that place of residence is located in another part of the UK they will have a “close connection” to that part of the UK and will not be a Welsh taxpayer.

Where a “close connection” to Wales or any other part of the UK is established using this test, no further tests need to be considered as whether the individual in question is or is not a Welsh taxpayer will have been established.

 

Examples

 

“National identity”

David and Alice are twins born and brought up in Aberystwyth, where they have both lived the vast majority of their lives.  David lives in a flat in Aberystwyth.  Alice moved to England for work purposes some years previously and lives in a house in Manchester.

While both David and Alice regard themselves as Welsh, this is not relevant to determining Welsh taxpayer status.  Only their place of residence, where they live, is relevant to establishing their Welsh taxpayer status.  David is a Welsh taxpayer; Alice is not.

 

Location of work

Throughout the whole of the tax year Sharon lives in a flat in Bristol but is employed by a company based in Cardiff, where her office is situated. 

The location of an individual’s employer or where they work is not relevant to deciding Welsh taxpayer status.  Only Sharon’s place of residence, where she lives, is relevant to establishing her Welsh taxpayer status.  Sharon is not a Welsh taxpayer.

 

Location of income source

Ravi is retired and lives in Liverpool.  As well as his state pension Ravi also has a monthly income from a private pension provided by a Cardiff based pension firm and a work pension from his time as a teacher in Rhyl.

Neither the location of the pension provider from whom a pension is received nor the location of the employment from which a pension derives is relevant to deciding whether he is a Welsh taxpayer.  Only Ravi’s place of residence, where he lives, is relevant to establishing his Welsh taxpayer status.  Ravi lives in Liverpool so is not a Welsh taxpayer.

 

Regular travel

Throughout the whole of a tax year, Mohammed lives with his wife in Huddersfield and works as a long distance lorry driver.  His work regularly takes him away from home for days at a time, travelling across the UK, driving overnight, often in Wales.

Notwithstanding his spending considerable time in many different parts of the UK, especially in Wales, driving or even sleeping in his lorry overnight does not mean it constitutes a place of residence.  Only Mohammed’s place of residence – his home in Huddersfield is relevant to establishing his Welsh taxpayer status.  Mohammed is not a Welsh taxpayer.