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Tax Residency – Inbound

With any set of residency rules, you need to define who is ‘inside the tax net’ and who is ‘outside the tax net’ in a given tax year.

The SRT does this by having:

  • Three automatic non-resident tests;
  • Three automatic UK-resident tests;
  • Tests based on an individual’s number of connection factors and days spent in the UK.

If you are moving to the UK to work for the first time, then you will be interested in the tests under items 2 and 3.When you are leaving the UK and either going to another location or repatriating to Australia, you will be interested in the tests under item 1 above.

Global accounting firm, KPMG have simplified and summarised the SRT rules in a flowchart which can be viewed at this link.

Whilst the flowchart provides a excellent guide as to how the rules apply, it is also complex. Once again, if you don’t know how the rules apply to you, then you should seek professional tax advice before moving to the UK.