- This topic has 3 replies, 2 voices, and was last updated 11 months ago by
mrjonbain.
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
New! Lectures for ACCA AAA September 2022 Exams are now available >>
New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>
Forums › ACCA Forums › ACCA TX Taxation Forums › Resident / not resident UK
Can anyone explain me this,
As per OpenTuition notes:
A.Days in UK >>> B.Previously Resident (R) >>>C.Not Previously Resident
A.(R)<16 >>> B.Automatically NOT R >>>C.Automatically NOT R
A.16 – 45 >>> B.R if 4 UK ties >>>C.Automatically NOT R
A.46 – 90 >>> B.R if 3 UK ties >>>C.R if 4 UK ties
…etc.
Illustration 5.
Lewis was in the UK for 80 days in 2020/21 when he lived in the only home that he owns.
Answer: Lewis has been in the UK too long to be treated as automatically not resident, irrespective of his previous residence. He will, however be treated as automatically UK resident as his only home is in the UK.
– I don’t understand why is that? I mean, if we rely on the table above, he goes to the third line 46-90 days spent in the UK. It means that if he was previously a resident, then to become a resedent in 2020/21 he should have 3 UK ties.
As far as I can see, he has only 1 UK tie (he owns a place in the UK).
So it means, that he can’t be a resident.
But as we can see in answers, he IS a resident. Why??
Right, tests of residence have to be done in order. First it should be established if someone is automatically overseas resident. If not the case then the tests of automatic UK residence should be applied. In this case one of tests of automatic UK residence is met – only home is in UK. Therefore as automatically UK resident ties test does not have to be applied. Hope this helps.
Thank you for your answer!
You are welcome.