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Hi guys
Could anyone give advise on this: what needs to be learned vs remembered for the residency rules? How will it be tested?
KGood question, I think you are given residency test table in rate sheet by which you can determine automatically resident or not resident, but you need to memories list of UK ties. Am I right? what you say?
There are 3 processes to remember.
1. Automatic overseas (non resident) rules
2. Automatic resident rules
3. 4 substantive ties testsAutomatic overseas test is as follows
1. individual has spent less than 16 days in the UK
2. individual has spent less than 46 days in the UK and has not been resident in last 3 years
3. Individual has spent less than 90 days in UK and full time job abroad.Automatic UK resident test is as follows
1. Individual stays more than 183 days.
2. individual stays more than 30 days does not have a home abroad
3. Individual has worked full time for 12 months during the tax yearIf the individual fails either test then the substantive tests must be applied. The required tests will be either pass or fail.
A table is given in the exam booklet indicating how many days and tests are required to establish residency.
Tests
1. Individual has family in the UK
2. Individual has access to accommodation for 91 days and spends 1 day or more in accommodation
3.Works full time in UK for 40 days or more.
4. Spends 90 days or more in either or both of previous 2 tax yearsyes the if the individual fails automatic overseas and then automatic UK then you must apply substantive tests. The table is given in the exam so they will probably describe the situation of the person and you will have to run the 2 automatic tests first and if they fail both then substantive tests apply.
made very complex for 2014, previously it was much simple. Chancellor George Osborne is tightening belt around financial nomads in UK.
This is correct there is no such thing as ordinary resident. The rules for FA2012 have been replaced in FA2013 with 3 new rules
1. Automatic overseas test
2. Automatic UK resident test
3. If an individual fails both of the above tests then a substantive ties test will be applicable.- Topics: 0
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thank you
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Hi needs to pass, how can I memorise all the rule for the p6 exams.
I don;t know how you can memorise ALL the rules for the exam. I trust you are talking about the rules relating to residency as per your post in this topic.
The first rule I learnt is automatic overseas.
As I found this the easiest.
less than 16 days in UK, less than 46 days in UK and non resident in last 3 tax years, less than 90 days with full time job abroad. (no capital gains tax even on UK assets and UK income on arising and foreign income on remittance unless they have been in the UK 7 out of last 9 years in which case remittance charge of 30k for 12 out of last 14 years remittance charge 50k)then UK test
more than 183 days in UK, more than 30 days in UK and has no home abroad, works full time in the UK for 365 daysIf an individual fails both automatic overseas and automatic UK then performance sufficient (substantive) ties tests
90faw
1/ Family
2/ Accomodation available for 90 days and spends 1 day or more in accomodation
3/ Works for more than 40 days
4/ In the UK for 90 days in either or both of previous 2 tax years.I would recommend learning the overseas and UK tests first and then the ties test. Then lots of question practise.
The below link is a bit heavier than what you will probably be examined on, I hope it helps you to obtain a better picture of the flow of rule checks you may need to make should a question arise
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