• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Overseas Tax- Residency Rules

Forums › ACCA Forums › ACCA ATX Advanced Taxation Forums › Overseas Tax- Residency Rules

  • This topic has 10 replies, 5 voices, and was last updated 11 years ago by Needs to pass.
Viewing 11 posts - 1 through 11 (of 11 total)
  • Author
    Posts
  • April 15, 2014 at 11:05 pm #165395
    katenka07
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi guys
    Could anyone give advise on this: what needs to be learned vs remembered for the residency rules? How will it be tested?
    K

    April 16, 2014 at 7:57 am #165417
    bassaniobroke
    Member
    • Topics: 48
    • Replies: 256
    • ☆☆☆

    Good 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?

    April 16, 2014 at 11:36 pm #165498
    Needs to pass
    Member
    • Topics: 9
    • Replies: 129
    • ☆☆

    There are 3 processes to remember.

    1. Automatic overseas (non resident) rules
    2. Automatic resident rules
    3. 4 substantive ties tests

    Automatic 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 year

    If 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 years

    April 17, 2014 at 12:44 pm #165534
    bassaniobroke
    Member
    • Topics: 48
    • Replies: 256
    • ☆☆☆

    @Needs to pass, are substantive tests examinable?

    April 18, 2014 at 12:32 am #165568
    Needs to pass
    Member
    • Topics: 9
    • Replies: 129
    • ☆☆

    yes 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.

    April 18, 2014 at 12:44 pm #165593
    bassaniobroke
    Member
    • Topics: 48
    • Replies: 256
    • ☆☆☆

    made very complex for 2014, previously it was much simple. Chancellor George Osborne is tightening belt around financial nomads in UK.

    April 18, 2014 at 12:53 pm #165594
    bassaniobroke
    Member
    • Topics: 48
    • Replies: 256
    • ☆☆☆

    deleted as this was related to FA2012.

    April 21, 2014 at 9:34 pm #165858
    Needs to pass
    Member
    • Topics: 9
    • Replies: 129
    • ☆☆

    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.

    April 22, 2014 at 10:16 am #165894
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 10
    • ☆

    thank you

    April 29, 2014 at 7:29 am #166707
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 5
    • ☆

    Hi needs to pass, how can I memorise all the rule for the p6 exams.

    April 29, 2014 at 3:08 pm #166761
    Needs to pass
    Member
    • Topics: 9
    • Replies: 129
    • ☆☆

    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 days

    If 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

    https://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Documents/PDF/Tax/220515_SRT_Flowchart_FB_21May_acc.pdf

  • Author
    Posts
Viewing 11 posts - 1 through 11 (of 11 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Rajpoot on FA Chapter 5 Questions IAS 37 – Provisions, Contingent Liabilities and Contingent Assets
  • bizuayehuy on Foreign exchange risk management (1) Part 1 – ACCA (AFM) lectures
  • effy.sithole@gmail.com on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • kyubatuu on MA Chapter 6 Questions Inventory Control
  • hhys on PM Chapter 14 Questions More variance analysis

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in