Counting Days in the UK
Story added: 25/02/2008
A big change is proposed to take effect from 6th April 2008 regarding counting days spent in the UK to determine tax residence.
It has been accepted Revenue practice to exclude days of arrival and departure when determining whether or not an individual is a UK resident for tax purposes.
On a days counting basis an individual is considered resident if they spends 183 days or more in the UK in any one tax year (statutory), or if they average in excess of 90 days per year in the UK over a four year period (non-statutory).
The draft legislation now includes the requirement to count days of arrival and departure when looking at the 183 day test; an entrance and exit in the same day will now constitute a day of presence. The 90 day test remains but it has not been chosen to make this statutory. This change will have a significant impact on frequent visitors in particular.
Please contact us if you are concerned that you may be considered resident in the UK under the proposed rule change.