- This topic has 1 reply, 2 voices, and was last updated 1 month ago by Kim Smith.
- September 21, 2020 at 8:00 pm #586332Suman
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.
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.September 22, 2020 at 6:58 am #586356Kim SmithKeymaster
This is the “General” forum:
“Everything about ACCA which is not exam specific please post in General ACCA Forums”
For exam-specific advice please post the the relevant forum https://opentuition.com/forum/acca-forums/acca-tx-taxation-forums
I see you have done that also – please see Rule #4 of the Community Rules https://opentuition.com/forums/forum-rules
“4. Do not cross post questions
Please refrain from posting the same question in several forums. There is normally one forum which is most suitable in which to post your question.”
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