|
| |
|
(6) | For the purposes of this paragraph, half-term breaks and other breaks when |
| |
teaching is not provided during a term are considered to form part of “term- |
| |
| |
| |
34 (1) | P has an accommodation tie for year X if— |
| 5 |
(a) | P has a place to live in the UK, |
| |
(b) | that place is available to P during year X for a continuous period of |
| |
| |
(c) | P spends at least one night at that place in that year. |
| |
(2) | If there is a gap of fewer than 16 days between periods in year X when a |
| 10 |
particular place is available to P, that place is to be treated as continuing to |
| |
be available to P during the gap. |
| |
(3) | P is considered to have a “place to live” in the UK if— |
| |
(a) | P’s home or at least one of P’s homes (if P has more than one) is in |
| |
| 15 |
(b) | P has a holiday home or temporary retreat (or something similar) in |
| |
| |
(c) | accommodation is otherwise available to P where P can live when P |
| |
| |
(4) | Accommodation may be “available” to P even if P holds no estate or interest |
| 20 |
in it and even has no legal right to occupy it. |
| |
(5) | If the accommodation is the home of a close relative of P’s, sub-paragraph |
| |
(1)(c) has effect as if for “at least one night” there were substituted “a total of |
| |
| |
(6) | A “close relative” is— |
| 25 |
(a) | a parent or grandparent, |
| |
| |
(c) | a child aged 18 or over, or |
| |
(d) | a grandchild aged 18 or over, |
| |
| in each case, including by half-blood or by marriage or civil partnership. |
| 30 |
| |
35 (1) | P has a work tie for year X if P works in the UK for at least 40 days (whether |
| |
continuously or intermittently) in year X. |
| |
(2) | For these purposes, P works in the UK for a day if P does more than 3 hours’ |
| |
work in the UK on that day. |
| 35 |
36 (1) | This paragraph applies for the purposes of paragraph 35. |
| |
(2) | It applies in cases where P has a relevant job on board a vehicle, aircraft or |
| |
| |
(3) | When making a cross-border trip as part of that job— |
| |
(a) | if the trip begins in the UK, P is assumed to do more than 3 hours’ |
| 40 |
work in the UK on the day on which it begins, |
| |
(b) | if the trip ends in the UK, P is assumed to do fewer than 3 hours’ |
| |
work in the UK on the day on which it ends. |
| |
|
| |
|
| |
|
(4) | Those assumptions apply regardless of how late in the day the trip begins or |
| |
ends (even if it begins or ends just before midnight). |
| |
(5) | For the purposes of sub-paragraph (3)(a), it does not matter whether the trip |
| |
| |
(6) | A day that falls within both paragraph (a) and paragraph (b) of sub- |
| 5 |
paragraph (3) is to be treated as if it fell only within paragraph (a). |
| |
(7) | In the case of a cross-border trip to or from the UK that is undertaken in |
| |
| |
(a) | the day on which the trip begins or, as the case may be, ends is the |
| |
day on which the stage of the trip that involves crossing the UK |
| 10 |
border begins or ends, and |
| |
(b) | accordingly, any day on which a stage is undertaken by P solely |
| |
within the UK must (if it lasts for more than 3 hours) be counted |
| |
separately as a day on which P does more than 3 hours’ work in the |
| |
| 15 |
| |
37 | P has a 90-day tie for year X if P has spent more than 90 days in the UK in— |
| |
(a) | the tax year preceding year X, |
| |
(b) | the tax year preceding that tax year, or |
| |
(c) | each of those tax years separately. |
| 20 |
| |
38 (1) | P has a country tie for year X if the country in which P meets the midnight |
| |
test for the greatest number of days in year X is the UK. |
| |
| |
(a) | P meets the midnight test for the same number of days in year X in |
| 25 |
two or more countries, and |
| |
(b) | that number is the greatest number of days for which P meets the |
| |
midnight test in any country in year X, |
| |
| P has a country tie for year X if one of those countries is the UK. |
| |
(3) | P meets the “midnight test” in a country for a day if P is present in that |
| 30 |
country at the end of that day. |
| |
| |
| |
| |
39 | This Part of this Schedule— |
| 35 |
(a) | explains when, as respects an individual, a tax year is a split year, |
| |
(b) | defines the overseas part and the UK part of a split year, and |
| |
(c) | amends certain enactments to provide for special charging rules in |
| |
cases involving split years. |
| |
|
| |
|
| |
|
40 (1) | The effect of a tax year being a split year is to relax the effect of paragraph |
| |
2(3) (which treats individuals who are UK resident “for” a tax year as being |
| |
UK resident at all times in that year). |
| |
(2) | When and how the effect of paragraph 2(3) is relaxed is defined in the special |
| |
charging rules introduced by the amendments made by this Part. |
| 5 |
(3) | Subject to those special charging rules (and any other special charging rules |
| |
for split years that may be introduced in the future), nothing in this Part |
| |
alters an individual’s residence status for a tax year or affects his or her |
| |
| |
| 10 |
(a) | does not apply in determining the residence status of personal |
| |
| |
(b) | applies to only a limited extent in determining the residence status of |
| |
the trustees of a settlement (see section 475 of ITA 2007 and section |
| |
69 of TCGA 1992, as amended by this Part). |
| 15 |
42 | The existence of special charging rules for cases involving split years is not |
| |
intended to affect any question as to whether an individual would fall to be |
| |
regarded under double taxation arrangements as a resident of the UK. |
| |
Definition of a “split year” |
| |
43 (1) | As respects an individual, a tax year is a “split year” if— |
| 20 |
(a) | the individual is resident in the UK for that year, and |
| |
(b) | the circumstances of the case fall within— |
| |
(i) | Case 1, Case 2 or Case 3 (cases involving actual or deemed |
| |
departure from the UK), or |
| |
(ii) | Case 4, Case 5, Case 6, Case 7 or Case 8 (cases involving actual |
| 25 |
or deemed arrival in the UK). |
| |
(2) | The 8 Cases are described in paragraphs 44 to 51. |
| |
(3) | In those paragraphs, the individual is referred to as “the taxpayer” and the |
| |
tax year as “the relevant year”. |
| |
(4) | In applying Part 2 of this Schedule to those paragraphs, for “P” read “the |
| 30 |
| |
| |
44 (1) | The circumstances of a case fall within Case 1 if they are as described in sub- |
| |
| |
(2) | The taxpayer was resident in the UK for the previous tax year (whether or |
| 35 |
not it was a split year). |
| |
(3) | There is at least one period (consisting of one or more days) that— |
| |
(a) | begins with a day that— |
| |
(i) | falls within the relevant year, and |
| |
(ii) | is a day on which the taxpayer does more than 3 hours’ work |
| 40 |
| |
(b) | ends with the last day of the relevant year, and |
| |
(c) | satisfies the overseas work criteria. |
| |
|
| |
|
| |
|
(4) | The taxpayer is not resident in the UK for the next tax year because the |
| |
taxpayer meets the third automatic overseas test for that year (see paragraph |
| |
| |
(5) | A period “satisfies the overseas work criteria” if— |
| |
(a) | the taxpayer works sufficient hours overseas, as assessed over that |
| 5 |
| |
(b) | during that period, there are no significant breaks from overseas |
| |
| |
(c) | the number of days in that period on which the taxpayer does more |
| |
than 3 hours’ work in the UK does not exceed the permitted limit, |
| 10 |
| |
(d) | the number of days in that period falling within sub-paragraph (6) |
| |
does not exceed the permitted limit. |
| |
(6) | A day falls within this sub-paragraph if— |
| |
(a) | it is a day spent by the taxpayer in the UK, but |
| 15 |
(b) | it is not a day that is treated under paragraph 23(4) as a day spent by |
| |
| |
(7) | To work out whether the taxpayer works “sufficient hours overseas” as |
| |
assessed over a given period, apply paragraph 14(3) but with the following |
| |
| 20 |
(a) | for “P” read “the taxpayer”, |
| |
(b) | for “year X” read “the period under consideration”, |
| |
(c) | for “365 (or 366 if year X includes 29 February)” read “the number of |
| |
days in the period under consideration”, and |
| |
(d) | in paragraph 28(9)(b), as it applies for the purposes of step 3, for “30” |
| 25 |
read “the permitted limit”. |
| |
(8) | The permitted limit is— |
| |
(a) | for sub-paragraphs (5)(c) and (7)(d), the number found by reducing |
| |
30 by the appropriate number, and |
| |
(b) | for sub-paragraph (5)(d), the number found by reducing 90 by the |
| 30 |
| |
(9) | The appropriate number is the result of— |
| |
| |
| |
(a) | 30, for sub-paragraphs (5)(c) and (7)(d), or |
| 35 |
(b) | 90, for sub-paragraph (5)(d), and |
| |
“B” is the number of whole months in the part of the relevant year |
| |
before the day mentioned in sub-paragraph (3)(a). |
| |
| |
45 (1) | The circumstances of a case fall within Case 2 if they are as described in sub- |
| 40 |
| |
(2) | The taxpayer was resident in the UK for the previous tax year (whether or |
| |
not it was a split year). |
| |
|
| |
|
| |
|
(3) | The taxpayer has a partner whose circumstances fall within Case 1 for— |
| |
(a) | the relevant year, or |
| |
(b) | the previous tax year. |
| |
(4) | On a day in the relevant year, the taxpayer moves overseas so the taxpayer |
| |
and the partner can continue to live together while the partner is working |
| 5 |
| |
(5) | In the part of the relevant year beginning with the deemed departure day— |
| |
(a) | the taxpayer has no home in the UK at any time, or has homes in both |
| |
the UK and overseas but spends the greater part of the time living in |
| |
| 10 |
(b) | the number of days that the taxpayer spends in the UK does not |
| |
exceed the permitted limit. |
| |
(6) | The taxpayer is not resident in the UK for the next tax year. |
| |
(7) | If sub-paragraph (3)(a) applies, the “deemed departure day” is the later of— |
| |
(a) | the day mentioned in sub-paragraph (4), and |
| 15 |
(b) | the first day of what is, for the partner, the overseas part of the |
| |
relevant year as defined for Case 1 (see paragraph 53). |
| |
(8) | If sub-paragraph (3)(b) applies, the “deemed departure day” is the day |
| |
mentioned in sub-paragraph (4). |
| |
(9) | The permitted limit is the number found by reducing 90 by the appropriate |
| 20 |
| |
(10) | The appropriate number is the result of— |
| |
| |
| |
“B” is the number of whole months in the part of the relevant year |
| 25 |
before the deemed departure day. |
| |
| |
46 (1) | The circumstances of a case fall within Case 3 if they are as described in sub- |
| |
| |
(2) | The taxpayer was resident in the UK for the previous tax year (whether or |
| 30 |
not it was a split year). |
| |
(3) | At the start of the relevant year the taxpayer had one or more homes in the |
| |
| |
(a) | there comes a day in the relevant year when P ceases to have any |
| |
| 35 |
(b) | from then on, P has no home in the UK for the rest of that year. |
| |
(4) | In the part of the relevant year beginning with the day mentioned in sub- |
| |
paragraph (3)(a), the taxpayer spends fewer than 16 days in the UK. |
| |
(5) | The taxpayer is not resident in the UK for the next tax year. |
| |
|
| |
|
| |
|
(6) | At the end of the period of 6 months beginning with the day mentioned in |
| |
sub-paragraph (3)(a), the taxpayer has a sufficient link with a country |
| |
| |
(7) | The taxpayer has a “sufficient link” with a country overseas if and only if— |
| |
(a) | the taxpayer is considered for tax purposes to be a resident of that |
| 5 |
country in accordance with its domestic laws, or |
| |
(b) | the taxpayer has been present in that country (in person) at the end |
| |
of each day of the 6-month period mentioned in sub-paragraph (6), |
| |
| |
(c) | the taxpayer’s only home is in that country or, if the taxpayer has |
| 10 |
more than one home, they are all in that country. |
| |
| |
47 (1) | The circumstances of a case fall within Case 4 if they are as described in sub- |
| |
| |
(2) | The taxpayer was not resident in the UK for the previous tax year. |
| 15 |
(3) | At the start of the relevant year, the taxpayer did not meet the only home |
| |
test, but there comes a day in the relevant year when that ceases to be the |
| |
case and the taxpayer then continues to meet the only home test for the rest |
| |
| |
(4) | For the part of the relevant year before that day, the taxpayer does not have |
| 20 |
| |
(5) | The “only home test” is met if— |
| |
(a) | the taxpayer has only one home and that home is in the UK, or |
| |
(b) | the taxpayer has more than one home and all of them are in the UK. |
| |
(6) | Paragraphs 17 to 20 (and Part 2 of this Schedule so far as it relates to those |
| 25 |
paragraphs) apply for the purposes of sub-paragraph (4) with the following |
| |
| |
(a) | references in those paragraphs and that Part to year X are to be read |
| |
as references to the part of the relevant year mentioned in sub- |
| |
| 30 |
(b) | each number of days mentioned in the first column of the Table in |
| |
paragraphs 18 and 19 is to be reduced by the appropriate number. |
| |
(7) | The appropriate number is found by multiplying the number of days, in |
| |
each case, by— |
| |
| where “A” is the number of whole months in the part of the relevant year |
| 35 |
beginning with the day mentioned in sub-paragraph (3). |
| |
(8) | Sub-paragraph (6)(a) does not apply to the references to year X in |
| |
paragraphs 32(1)(b) and 33 of this Schedule (which relate to the residence |
| |
status of family members) so those references must continue to be read as |
| |
| 40 |
|
| |
|
| |
|
| |
48 (1) | The circumstances of a case fall within Case 5 if they are as described in sub- |
| |
| |
(2) | The taxpayer was not resident in the UK for the previous tax year. |
| |
(3) | There is at least one period of 365 days in respect of which the following |
| 5 |
| |
(a) | the period begins with a day that— |
| |
(i) | falls within the relevant year, and |
| |
(ii) | is a day on which the taxpayer does more than 3 hours’ work |
| |
| 10 |
(b) | in the part of the relevant year before the period begins, the taxpayer |
| |
does not have sufficient UK ties, |
| |
(c) | the taxpayer works sufficient hours in the UK, as assessed over the |
| |
| |
(d) | during the period, there are no significant breaks from UK work, and |
| 15 |
(e) | at least 75% of the total number of days in the period on which the |
| |
taxpayer does more than 3 hours’ work are days on which the |
| |
taxpayer does more than 3 hours’ work in the UK. |
| |
(4) | To work out whether the taxpayer works “sufficient hours in the UK” as |
| |
assessed over a given period, apply paragraph 9(2) but for “P” read “the |
| 20 |
| |
(5) | Paragraphs 17 to 20 (and Part 2 of this Schedule so far as it relates to those |
| |
paragraphs) apply for the purposes of sub-paragraph (3)(b) with the |
| |
| |
(a) | references in those paragraphs and that Part to year X are to be read |
| 25 |
as references to the part of the relevant year mentioned in sub- |
| |
| |
(b) | each number of days mentioned in the first column of the Table in |
| |
paragraphs 18 and 19 is to be reduced by the appropriate number. |
| |
(6) | The appropriate number is found by multiplying the number of days, in |
| 30 |
each case, by— |
| |
| where “A” is the number of whole months in the part of the relevant year |
| |
beginning with the day on which the 365-day period in question begins. |
| |
(7) | Sub-paragraph (5)(a) does not apply to the references to year X in |
| |
paragraphs 32(1)(b) and 33 of this Schedule (which relate to the residence |
| 35 |
status of family members) so those references must continue to be read as |
| |
| |
| |
49 (1) | The circumstances of a case fall within Case 6 if they are as described in sub- |
| |
| 40 |
(2) | The taxpayer was not resident in the UK for the previous tax year because |
| |
the taxpayer met the third automatic overseas test for that year (see |
| |
| |
|
| |
|