Tx notes fa22 Final

June 2023 to March 2024 exams
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9. Residence 
A taxpayer’s liability to income tax, CGT and IHT is based upon their residence and/or domicile. At 
TX-UK a UK resident will be liable to income tax on worldwide income and a non UK resident will be 
liable on only UK income. It is essential therefore to determine the residence of the taxpayer to be 
able to determine their UK tax liability.
These rules are detailed and based on the number of days that the individual spends in the UK and 
the following table will therefore be given in the tax rates and allowances section of the examination 
paper.
STEP 1: Does the individual satisfy any of the automatic overseas tests? 
Individual in UK in tax year less than:
(i) 16 days or
(ii) 46 days and not UK resident for any of last 3 years or
(iii) 91 days and works full-time overseas
YES - Not UK resident 
NO - step 2 
STEP 2: Does the individual satisfy any of the automatic UK tests? 
(i) he/she spends at least 183 days in the UK in the tax year or
(ii) his/her only home is in the UK or
(iii) he/she works full-time in the UK
YES - UK resident 
NO - step 3


Days in UK
Previously Resident (R)
Not Previously Resident (R)
<16
Automatically NOT R
Automatically NOT R
16 – 45
R if 4 UK ties
Automatically NOT R
46 – 90
R if 3 UK ties
R if 4 UK ties
91 – 120
R if 2 UK ties
R if 3 UK ties
121 – 182
R if 1 UK tie
R if 2 UK ties
>183
Automatically R
Automatically R

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