RDRM11930 - Residence: The SRT: Fifth automatic overseas test

This test applies to an individual who dies in the tax year under consideration. The deceased will not be UK resident for the tax year in which they die if:

  • they were not resident in the UK for the 2 preceding tax years because they met the third automatic overseas test for each of those years
  • they were not resident in the UK in the preceding tax year because they met the third automatic overseas test for that year, and the tax year before that was a split year by virtue of Case 1

And

  • they met the modified condiitions of the third automatic overseas test for the period from the start of the tax year in which they died to the day before their death

The fifth automatic overseas test looks at full-time work overseas in the tax year of death, but it considers only the period from the start of the tax year to the day before death. The sufficient hours calculation must be modified by applying it to this shorter period, and there must be no significant break during this work period. To calculate if a deceased person has worked sufficient hours, the specified steps must be followed:

Step 1:

Identify any disregarded days: these are any days from the start of the tax year in which the individual died to the day before death, on which the deceased worked for more than 3 hours in the UK, including those days they also did some work overseas on the same day.

Step 2:

Calculate the net overseas hours: add up (for all their employments and/or trades carried on), the total number of hours that the deceased worked overseas; from the start of the tax year in which they died to the day before death. Do not include in the net overseas hours any hours that the deceased worked overseas on disregarded days.

Step 3:

Calculate the number of days in the reference period. Only the days in the period from the start of the tax year up to and including the day before the date of death should be considered. From that number the following need to be subtracted:

  • the total number of disregarded days (Step 1)
  • any days that were part of gaps between employments
  • other days that can reduce the reference period

Step 4:

Divide the number of days in the reference period by 7. If the answer is more than 1 and not a whole number, round down to the nearest whole number. If the answer is less than 1, round up to 1.

Step 5:

Divide the net overseas hours (Step 2), by the number resulting from Step 4. If the answer is 35 or more, the deceased has worked sufficient hours overseas.

If the deceased meets neither the fourth or fifth automatic overseas tests, consideration should be given to the fourth automatic UK test for deceased persons. (see RDRM11940).