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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am a Jersey resident since 1968. George Osbornes budget

Customer Question

I am a Jersey resident since 1968. George Osborne's budget announced new rules covering tax residency to come into effect on Saturday 6th April. There is a risk that people from Jersey could find thesmselves classed as UK residents for tax purposes if they are not aware of the detail of the laws. I have been on the UK tax websites but cannot find information specifically to my situation. I am 67 years of age, retired and earn no money in the UK. I have a small pension from the UK, taxed in Jersey. I frequently visit relatives and friends in the UK for pleasure and holidays. How many days am I allowed to visit England?
Submitted: 4 years ago.
Category: Tax
Expert:  TonyTax replied 4 years ago.

You will be automatically treated as non-UK resident if you meet any of the criteria set out in paragraphs 9, 10 or 11 of the guidance notes here. Paragraph 10 would probably be more likely to be applicable to you than either of paragraph 9 or 11.

If none of the automatic non-UK residency tests apply then you need to look at the automatic UK residency tests in paragraphs 14 to 23 inclusive of the guidance notes. Unless you spend more than 182 days in the UK, have a home in the UK or work in the UK you are unlikely to be classed as UK resident for tax purposes.

If none of the automatic overseas or automatic UK tests apply then you need to read paragraphs 25 and 27 and then consider the sufficient ties tests in paragraphs 71 to 77 inclusive. You should refer to Table B at the top of page 21 of the guidance notes and then refer to the UK ties tests from paragraph 104 to 117 inclusive.

The maximum number of days that you can spend in the UK without having to consider the ties to the UK tests is 45 (Table B mentioned above).

Even if you were treated as UK resident for any tax year, the double tax treaty between the UK and Jersey would protect you from paying tax twice on the same income. The double tax treaty is here. DT10753 and INTM154020 may be of relevance to you if you spend alot of time in the UK.

I hope this helps but let me know if you have any further questions.