The Statutory Residence Test (‘SRT’) is a framework used in the UK to determine an individual’s tax residency status for a specific tax year. It was introduced in April 2013 and is primarily applied to income tax, capital gains tax (‘CGT’), and inheritance tax (‘IHT’). From 6 April 2025, this becomes more important than ever for non-domiciled individuals living in the UK, as a new system for UK IHT emphasises on residence, with the tax system focusing on where you live rather than your country of origin or long-term intentions.
 
The SRT considers factors like:
  • Days spent in the UK: The number of days you were physically present in the UK during the tax year.
  • Connections to the UK: Such as work commitments, family ties, and owning property in the UK.
  • Automatic tests: These include rules that can classify someone as UK resident or non-resident based on objective criteria.
The SRT is detailed, so individuals often need to assess their circumstances carefully and should consult with Trusted Tax Advice for further detail.
 
The Statutory Residence Test (SRT) is divided into three main parts: automatic overseas tests, automatic UK tests, and sufficient ties tests.
 
Here’s an example from each category to illustrate how the test works:
 
1. ‎Automatic Overseas Test
You are automatically non-resident for a tax year if:
  • You were resident in the UK for one or more of the previous three tax years, but you spend fewer than 16 days in the UK in the current tax year.
  • You leave the UK to work full-time overseas and spend less than 91 days in the UK with less than 31 days working here.
2. Automatic UK Test
You are automatically resident in the UK for a tax year if:
  • You spend 183 days or more in the UK during that tax year.
  • Have your only home in the UK.
  • Work sufficient hours in the UK.
3. Sufficient Ties Test
This comes into play when neither automatic test applies. The Sufficient Ties Test looks at how many “ties” you have with the UK during a tax year. The more ties you have, the fewer days you can spend in the UK before being considered a resident. Here’s a general breakdown of the ties:
 
Family Tie
You have a family tie if you have a spouse, civil partner, or minor children who are resident in the UK.
 
Accommodation Tie
You have an accommodation tie if there is a place in the UK where you can live or stay (e.g., a house, apartment, or other dwelling) that is available to you for at least 91 days in the tax year. Staying there for one night or more confirms this tie.
 
Work Tie
You have a work tie if you carry out 40 or more days of work in the UK during the tax year. A day counts as a workday if you work for more than three hours in the UK.
 
90-Day Tie
You have a 90-day tie if you spent 90 or more days in the UK in either of the two preceding tax years.
 
Country Tie
You have a country tie if you spend more time in the UK than in any other single country during the tax year. This tie typically applies to individuals who travel frequently.
 
The Sufficient Ties Test then uses the number of ties you have to establish your residency based on the number of days spent in the UK.  For example, for a person resident in one of the last three tax years:
  • If you have four or more ties, you only need to spend 16-45 days in the UK to be considered resident.
  • If you have one tie, you can spend up to 120 days before being considered resident.
The below gives further examples of how these tests work.
 
Example 1: Minimal ties, more days in the UK
Bridget spends 105 days in the UK in the current tax year. She:
  • Has no family in the UK (no family tie)
  • Does not work in the UK (no work tie)
  • Owns a holiday home in Cornwall that’s available to her year-round (accommodation tie)
  • Did not spend 90+ days in the UK in either of the previous two tax years (no 90-day tie)
  • Spends more time in her home country of France than in the UK (no country tie)
With only 1 tie (accommodation), Bridget can spend up to 120 days in the UK without being considered a resident. Since she spends 105 days, she is not a UK resident for the tax year.
 
Example 2: Multiple ties, fewer days in the UK
Simon spends 65 days in the UK in the tax year. He:
  • Has a spouse who lives in the UK (family tie)
  • Has available accommodation in Manchester (accommodation tie)
  • Works remotely for his UK employer 50 days a year, with 15 of those days spent physically in the UK (work tie)
  • Spent 90+ days in the UK in both of the previous two tax years (90-day tie)
  • Spends more time in the UK than in any other single country (country tie)
Simon has 5 ties. Based on the SRT thresholds, he only needs 15-45 days in the UK to be considered UK resident. Since he spends 65 days, Simon is a UK resident for this tax year.
 
Note both of these examples assume the individual is a ‘leaver’ and are provided as a general summary and does not constitute advice. A full review of circumstances will always be required.
 
These examples show how ties and days in the UK interact to determine UK tax residency. If you would like further detail or need your residency position reviewing in anticipation of the changes forthcoming from 6 April 2025, please do not hesitate to contact Trusted Tax Advice for assistance.

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