Non Residence
The Revenue issued guidance in December 2010 on the subject. Guidance is their view of what constitutes residence.
Their tests include:-
- Having family ties in the UK
- Having a house available for use in the UK
- Having a business based in the UK
- Having social ties and regularly attending events in the UK
- Owning or being a director of a UK company
This interpretation is highly biased in favour of the Revenue. It is also subjective. As a consequence "the Government will consult in June 2011 on the introduction of a statutory definition of residence to provide greater certainty for taxpayers."
To date they have issued a decision tree which is still highly subjective. In essence it indicates that non-residence is established by being in full time employment overseas. However, it then states that having a home and/or family in the UK could undermine that outcome. This contradiction will have to be clarified to create certainty for non-resident individuals.
Account Tax Ltd