SCHEDULES
SCHEDULE 45Statutory residence test
PART 3Split year treatment
Case 6: ceasing full-time work overseas
49
1
The circumstances of a case fall within Case 6 if they are as described in sub-paragraphs (2) to (4).
2
The taxpayer—
a
was not resident in the UK for the previous tax year because the taxpayer met the third automatic overseas test for that year (see paragraph 14), but
b
was resident in the UK for one or more of the 4 tax years immediately preceding that year.
3
There is at least one period (consisting of one or more days) that—
a
begins with the first day of the relevant year,
b
ends with a day that—
i
falls within the relevant year, and
ii
is a day on which the taxpayer does more than 3 hours' work overseas, and
c
satisfies the overseas work criteria.
4
The taxpayer is resident in the UK for the next tax year (whether or not it is a split year).
5
A period “satisfies the overseas work criteria” if—
a
the taxpayer works sufficient hours overseas, as assessed over that period,
b
during that period, there are no significant breaks from overseas work,
c
the number of days in that period on which the taxpayer does more than 3 hours' work in the UK does not exceed the permitted limit, and
d
the number of days in that period falling within sub-paragraph (6) does not exceed the permitted limit.
6
A day falls within this sub-paragraph if—
a
it is a day spent by the taxpayer in the UK, but
b
it is not a day that is treated under paragraph 23(4) as a day spent by the taxpayer in the UK.
7
To work out whether the taxpayer works “sufficient hours overseas” as assessed over a given period, apply paragraph 14(3) but with the following modifications—
a
for “P” read “the taxpayer”,
b
for “year X” read “the period under consideration”,
c
for “365 (or 366 if year X includes 29 February)” read “the number of days in the period under consideration”, and
d
in paragraph 28(9)(b), as it applies for the purposes of step 3, for “30” read “the permitted limit”.
8
The permitted limit is—
a
for sub-paragraphs (5)(c) and (7)(d), the number found by reducing 30 by the appropriate number, and
b
for sub-paragraph (5)(d), the number found by reducing 90 by the appropriate number.
9
The appropriate number is the result of—
where—
“A” is—
- a
30, for sub-paragraphs (5)(c) and (7)(d), or
- b
90, for sub-paragraph (5)(d), and
“B” is the number of whole months in the part of the relevant year after the 365-day period in question ends.