Residence in the UK for Foreigners - Paper Sample

Individuals who have not fulfilled the automatic overseas test, they undergo the automatic UK test. One is classified as a resident if they have spent 183 or more days of the current tax year. Secondly, an individual owns a permanent home in the UK for at least 91 continuous days out of which 30 days should have been in the relevant tax year. On top, the person should have stayed at the home for not less than 30 days in the fiscal year and if they own a home overseas for the 91 days, they should not have been in the home for 30 days. Thirdly, a person works full time in the country (PwC, 2016).

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If the Individual does meet the UK and the automatic overseas tests, they are subjected to sufficient ties test, where they are grouped into two, arrivers and leavers. The arrivers are those who have not been categorized as residents for the last three years, while leavers are those who have been residents for at least one out of the previous three years. Leavers are tested for residence family, work, accommodation, country, and 90-day tie. For one to be a resident ties are considered depending on days spent in the UK during the tax year, for example, a person who has stayed for less than 16 days is automatically non-resident. 16-45 days should satisfy four ties, 46 -90 days three ties, 91-120 two ties, 121- 182 one tie and 183 automatically a resident. On the other hand for arrivers mut satisfy any of the following ties have a resident family, accommodation, work and 90-day (KPMG, 2016). Those with less than 46 days of residence are automatically nonresidents, 46-90 days should satisfy four ties, 91-120 days three ties, 121- 182 two ties and 183 and above always a resident.

Rob and Ana did not satisfy the automatic overseas and UK tests and therefore were subject to the tie test. They were leavers because they were residents in the last three years proceeding 2015/16 tax year. In the ties test as leavers, they were supposed to satisfy 2 UK ties because they were expected to spend 105 days in the country. They could meet the 90-day and accommodation ties in the 2015/16 tax years, and therefore considered as residents.

However, the couple would be treated as residents in the 2015/16 tax years for tax purposes in the UK because of the way individuals are treated as residents.