TX-UK; Test for whether Automatically Resident or Automatically Not Resident

Dear all,

Hope you all are doing well!!

Just a quick query in relation to the residency status test for paper TX-UK (taxation – UK).

I have just made my own note to check the UK residency status of an individual for the current tax year for tax puposes based on the OT lectures and the lecture notes. I have enlisted the steps that I am following. Can anyone kindly have a look into this below and please let me know if my understanding on this is correct.

Many thanks

Best wishes
Suman

Step 1. Test for whether PREVIOUSLY RESIDENT or NOT PREVIOUSLY RESIDENT

Firstly, we need to see if a person was previously resident in the UK or not.
a. A person was PREVIOUSLY RESIDENT in the UK if he was resident in the UK in any of the preceding 3 tax years.
b. If statement a is not applicable, then a person is considered to be NOT PREVIOUSLY RESIDENT in the UK.

Step 2. Test for AUTOMATICALLY NOT RESIDENT for tax purposes for the current tax year.

Having established whether a person was previously resident or not previously resident in step 1, we then need to go through the table (the one that will be given in the exam in the tax table) to see if they qualify for AUTOMATICALLY NOT RESIDENT for tax purposes for the current tax year.

In addition, there’s also another test which can qualify a person as AUTOMATICALLY NOT RESIDENT for the current tax year for tax purposes, if they:
a. Work full time overseas AND
b. Have not lived in the UK in the current tax year for more than 90 days

Step 3. Test for AUTOMATCALLY RESIDENT for tax purposes for the current tax year.

A person qualifies as AUTOMATICALLY RESIDENT for tax purposes for the current tax year if they have lived in the UK for more than 183 days.

In addition, there’s also another test which can qualify a person as AUTOMATICALLY RESIDENT for tax purposes for the current tax year, if they:
a. Work full time in the UK OR (Sir, can you please confirm if this is ‘OR’ or should be ‘AND’?)
b. Have their only home in the UK
The above two points a and b can only be disregard if a person qualifies through one of the test as AUTOMATICALLY NOT RESIDENT in the UK.