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Overview Of Residence Rules

On 6 April 2013, (the start of the 2014 UK tax year), the Statutory Residence Test (SRT) was introduced by Her Majesty’s Revenue and Customs (HMRC) to provide a much more detailed framework for determining the residence status of individuals with connections to the UK.

Ultimately, the purpose of the SRT is to determine whether an individual is a resident in the UK for tax purposes.

Even if you were or were not considered a non-UK resident before the SRT was introduced in 2013, your status may have changed since its introduction.

The SRT regime is much more precise about determining the residency status of a taxpayer, which is in contrast to the Australian residency rules which can leave a lot open to interpretation. However, you could argue that the UK rules are much tighter than say the Australian residency tax rules, so if you want to avoid becoming tax resident of the UK, you need to understand the rules in detail so that you don’t inadvertently trigger tax residence.