RDRM11340 - Residence: The SRT: Time spent in the UK home

There are 2 time tests in the second automatic UK test:

  • the sufficient amount of time, and
  • the permitted amount of time

An individual will spend a sufficient amount of time in a UK home if, during the tax year, they are present at that home, for no matter how short a period, on at least 30 days. The 30 days do not have to be consecutive, it is 30 days in aggregate in the relevant tax year.

The permitted amount of time an individual can be present, for no matter how short a period, in an overseas home is fewer than 30 days in the relevant tax year. Again this is an aggregate over the relevant tax year.

Both the sufficient and permitted amounts of time tests apply to a full tax year. The days when an individual is present in the home do not need to fall within the 91 days period, but they must fall within the tax year.

The following examples demonstrate the time spent concept.

Example 1

Stan has lived in Australia all his life. In June 2012 he takes a holiday in London and likes it so much he decides to immigrate to the UK. He spends the next few months preparing for the move. He sells his Australian house (his only home), on 10 January 2014, and arrives in the UK on 25 January 2014. He finds a flat in London and moves in on 1 February 2014. The london flat is now his only home and he lives there for a year.

During the 2013-2014 tax year Stan is present in his Australian home on 250 days, and he is present in his London flat on 55 days.

In 2013-2014 Stan has a home in the UK from 1 February 2014, and is present in it on at least 30 days. Also from 1 February 2014 there is a period of 91 consecutive days, at least 30 of which fell in the 2013-2014 tax year, (the year under consideration), when Stan has a UK home and no overseas home.

As Stan does not meet any of the automatic overseas tests, he is resident under the second automatic UK test for the 2013-2014 tax year.

Example 2

Jane has a home in the UK throughout the tax years 2013-2014 and 2014-2015. She is present in that home on more than 30 days during the 2013-2014 tax year.

Jane acquires a home overseas on 1 March 2014 and is present there on 30 days in the 2013-2014 tax year.

Although there is a period of 91 consecutive days, 30 of which fall in 2013-2014, (the tax year under consideration), when Jane had both a UK home and an overseas home; there is also a period of at least 91 consecutive days, (6 April 2013 to 28 February 2014), when she had a UK home, (in which she spent sufficient time in 2013-2014), but no overseas home.

Jane is therefore resident in the UK for 2013-2014 under the second automatic UK test.

Example 3

Edith has had a home in Cheshire for many years. It is her only home. Edith retires towards the end of 2014-2015 tax year, and decides to use her retirement lump sum to see the world.

During the 2015-2016 tax year she takes 3 long holidays, visiting 22 different countries. She moves around and does not establish a home overseas. She keeps her Cheshire home throughout, returning briefly between trips, and is present there on 41 days in the 2015-2016 tax year.

In 2015-2016 Edith has a home in the UK in which she is present on at least 30 days in the tax year. During the year Edith has no overseas home.

Edith does not meet any of the automatic overseas tests, and therefore she is resident under the second automatic UK test for the 2015-2016 tax year.

Example 4

At 6 April 2014 Berni considers whether she meets the second automatic UK test for 2013-2014:

  • she bought a home in the UK on 1 January 2013 - it was her only home throughout 2013-2014
  • she was present in that home on at least 30 days in the tax year 2013-2014
  • she came to the UK on 10 April 2013 and rented out her overseas home, (which she had owned for many years), from 11 April 2013 to 10 March 2014

Therefore, during 2013-2014 there was a period of 91 days, 30 of which fell in the tax year during which Berni had a home in the UK in which she was present for a sufficient amount of time, and had no overseas home. As Berni did not meet any of the automatic overseas tests she is resident under the second automatic UK test.

If there is any uncertainty over whether a property consitutes a home RDRM13020 gives further details.

In certain circumstances a home can cease to be a home temporarily, which may have a bearing on whether an individual meets the second automatic UK test.

Example 5

Rosa is a professional cricketer who lives in New Zealand. She comes to the UK for the summer of 2015 to play for Trinity Bridge Ladies. She rents a house in Dorking for 4 months, commencing on 1 May 2015. She is present in her Dorking home on 100 days in 2015-2016. After the English cricket season ends she returns to New Zealand.

Throughout 2015-2016 Rosa owns a house in New Zealand. She is present in that house on 200 days in 2015-2016.

While she is in the UK, Rosa lets out her New Zealand home on a commercial basis to a third party, from 1 June to 31 August 2015, (92 days). For that period the New Zealand house is not Rosa’s home. There is a period of 91 consecutive days, at least 30 of which fall in 2015-2016, when Rosa had a UK home where she spends a sufficient amount of time, and when she does not have an overseas home. Rosa meets the second automatic UK test for 2015-2016.

If Rosa had not let out her New Zealand house, and it had remained available for Rosa to use throughout the summer; it would have remained her home and Rosa would not have met the second automatic UK test.