RFIG30380 - Residence for tax years before 2013-14: coming to the United Kingdom: the liability for the year of arrival

This chapter only applies to tax years up to and including 2012-2013. From 6 April 2013 the Statutory Residence Test (SRT) applies. For guidance on the SRT please see RFIG20000 onwards.

If, from the day of arrival, the individual is either:

  • resident and ordinarily resident (refer to PAYE81580)
  • resident but not ordinarily resident

the following will apply.

Personal Allowances

Full personal allowances are due.

Liability to UK Tax

Income chargeable to UK tax for the whole of the tax year of arrival, including untaxed interest, unless you have an exemption authority from PT Operations PSA Cardiff which covers the period up to the date of arrival (refer to Cardiff if you have any questions about an exemption authority); refer to EIM42860 and EIM40003.

Overseas income

Overseas income is chargeable, on the arising or remittance basis as appropriate, for the period from the day of arrival to 5 April next (refer to SAIM1130).

Capital Gains

Refer to the instructions at CG25720 onwards if the individual has disposed of any assets before the day of arrival.

Example

Take a simple example: say the individual is either:

  • not resident and not ordinarily resident to 5 November 2008, resident and ordinarily resident thereafter (NR/NOR to 5 November 2008, R/OR thereafter)
  • not resident and not ordinarily resident to 5 November 2008, resident but not ordinarily resident thereafter (NR/NOR to 5 November 2008, R but NOR thereafter):

Resident period

Liable on UK sources unless individual is NOR, liable on overseas sources.

Not-resident period

Liable on UK sources except:

  • government 'FOTRA' securities
  • income relieved under a DTA

Not liable on overseas sources.