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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4932
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have been resident in Cyprus for 12 years. I am retired

Resolved Question:

I have been resident in Cyprus for 12 years.

I am retired and do no work

The new rules for time spent in UK have changed for 2013-14

I fail all 3 automatic overseas tests because I don't work and spent more than 46 days in UK (61)

I definitely have no home tie,no family tie, no country tie and only a tenuous accommodation tie ( I sometimes stay with my sister)

I think that this means I will not be liable for any UK in 2013-14.

Is that correct ?

If my circumstances don't change how many days can I visit UK in 2014-15 ?

Thanks

Peter Tyrrell
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Based on information given by you, you appear to have no UK ties as spitulated by HMRC. Staying with a relative (sister) does not count as UK resident family tie.

If you are non resident throughout the three prior tax years (as is your case) and have no UK ties, you could spend up to 182 days in the current tax year and be regarded non-resident for UK tax purposes.

You were in the the UK for less than 90 days in the year preceeding the current tax year.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

Hi


 


Thanks for that.


 


Is it correct that this is double the previous period ?



Surely that's not what HMRC intended ?



If I spent 182 days next year I assume that would that impact on future years ?



Is there a rolling average that is applied to cover successive years ?

Expert:  taxadvisor.uk replied 2 years ago.

Peter, thank you for your reply.

One of the tests to determine sufficient UK ties is
90 day tie...
This test is fulfilled for a year if the individual spends more than 90 days in the UK in either the year preceding the current tax year and/or the year before that one.

 

There is also Accommodation tie test ...

This tie exists if the individual has ‘a place to live’ in the UK which is available to them for a continuous period of at least 91 days in that year , and at least one night is spent there. If the accommodation belongs to a close relative, the threshold is 16 days. A ‘place to live’ includes a holiday home and a property not owned by the individual. The HMRC Guidance sets how this rule will work in practice.

 

If HMRC deem you have 2 ties to the UK then number of days you could spend in a tax year are 90 without triggering UK residence


In light of above, it may wish to consider restricting your stay in the UK to no more than 90 days in a tax year.

I hope this is helpful.

Customer: replied 2 years ago.

I'm a bit confused ...can you please help me by explaining how the rules allow me to stay for 182 days and still be considered non-resident in the current tax year ?


 


What would happen in the next year and the year after that ?


 


I've not had any problem with the 90 rule for 17 years now so I'm normally very comfortable with it.


 


However,this year, my sister,a widow who lives alone in the UK, had knee replacement surgery and I spent time in UK nursing her and helping her until she regained full mobility. I assumed this time would not count as a part of my 90 days.


 


However,under the new rules,it is clear that this is no longer considered as an "exceptional circumstance"


 


If I can legitimately extend my time in UK without losing my non-residence status it would be helpful to my sister when she has her other knee replaced later in the year.


 


A bit more clarification for me would be helpful


 


Thanks

Expert:  taxadvisor.uk replied 2 years ago.

Peter, thank you for your reply.

The 90 day rule was a rolling average taken over 4 year period with less than 183 days in any tax year. These rules have been changed with the introduction of Statutory Residence Test.

With the changes introduced from 6 Apr 1013, in order to determine one’s residence status for the tax year, one has to consider

- the number of UK ties

- whether resident at any time in the three previous tax years

- number of days spent in the UK

You would only be regarded automatically resident in the UK for a particular tax year if you

- are present for 183 days in a tax year in the UK

- have a home in the UK and it is your only home

- carry out full time work in the UK

From what you have already said, the above don’t apply to you. In your case, you ought to consider UK ties to determine your residence status year on year....based on a three year period . They are

- Family tie

- Accommodation tie

- Work tie

-90 day tie

- Country tie

So long as you can limit your UK ties to no than two, you could stay in the UK for up to 120 days and remain non-resident.

More information on this subject can be found here (an article produced by my accounting body for the benefit of its members...

http://www.accaglobal.com/sg/en/member/cpd/taxation/cpd-articles/fa13-statutoryresidence.html

I hope this is helpful.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4932
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes

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