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Statutory residence test

Produced by Tolley in association with
Employment Tax
Guidance

Statutory residence test

Produced by Tolley in association with
Employment Tax
Guidance
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STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

This note provides an overview of the statutory residence test (SRT) introduced with effect from 6 April 2013. The SRT sets the ground rules for determining whether an individual is regarded as resident or not resident in the UK for tax purposes. Residence for tax purposes should not be confused with residence for immigration purposes as the rules for immigration are entirely separate from those for tax.

Why residence matters

The concept of residence is fundamental to the scope of UK taxation when determining whether an individual’s income is taxable in the UK. Residence is particularly important when considering non-UK sources of income considering non-UK sources of income because

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Lee McIntyre-Hamilton
Lee McIntyre-Hamilton

Tax Partner at Keystone Law , Employment Tax


Lee is a tax specialist and Partner at Keystone Law. He has been advising on global mobility and international employment tax matters for more than 20 years. He provides support to employers and their globally mobile employees. He also provides personal tax advice to globally mobile executives, including non‐resident directors. Lee’s expertise covers the employer and employee tax, social security and payroll implications of cross‐border moves. This includes employer and employee tax compliance, international share schemes tax, tax on pensions for mobile employees, the taxation of cross‐border termination payments and operating tax equalisation arrangements. Lee also provides advice on the tax aspects of global mobility and globally remote working policies and processes. Lee also covers international employment tax matters such as tax and social security for globally remote workers and the assessment of employment status for tax purposes. International organisations of all sizes turn to Lee for tax advice, across various sectors, including social and humanitarian enterprises, education, life sciences and pharmaceuticals. Lee is a member of the HMRC Expatriate Tax technical forum and regularly speak at industry events on global mobility and international employment tax matters. He is also the resident global mobility tax expert for the Global Payroll Association and provides tax training to payroll specialists on matters such as tax residence, international social security and short term business visitors.

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