Expat Forum For People Moving Overseas And Living Abroad banner

1 - 2 of 2 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter · #1 ·
Hi All,

I am filling in the residency supplementary page (SA109) of the UK tax return and I just have two questions about both the split year type and date applicable to my situation. Any help would be greatly appreciated!

With regards to the 2016-17 tax year, I was initially resident in the UK and left on 14th October 2016 to go to Canada on a two year working holiday permit. I have been resident in the UK for all previous tax years. I had no job lined up prior to going and after a job hunt, began work on 3rd January 2017.

I have done the HMRC statutory residency test and come up 'resident'. I also meet the split year criteria, so my tax situation will be that I am classed as resident from 6th April 2016 to 13th October 2016 and non-resident from 14th October 2016 to 5th April 2017 for tax purposes.

So my questions are:

1. Which split year case is most appropriate. I both left the UK to work overseas (Case 1) and left my UK home (Case 3). I know Case 1 has priority if both apply, but would it matter that I did not have a job lined up when leaving the country and instead found one once there?

2. If Case 1 is the appropriate choice, what should I then enter for the question 'the date from which the UK part of the year ends'? My initial thought was simply the 13th of October 2016, as that was my last full day in the UK. However, having read the guidance notes and the relevant sections of the RDR documents, it seems to be more complex than that, with a calculation needed in order to figure out if I meet 'overseas work criteria for a relevant period'. I punched in the numbers, and when using the period of 3rd January 2017 (when I began work) to the end of the tax year, I met the criteria with an outcome that was over 35. When I used the starting date of 13th October 2016 however, I did not reach the criteria, I guess due to the three month gap where I was looking for work initially. Would this mean that I would need to enter the 2nd of January 2017 as the date that my UK part of the year ends? Or am I missing something and can put October 13th 2016 after all? There are a lot of notes to accompany what sounds like an easy question!

Thanks again!
 

·
Registered
Joined
·
55 Posts
Split year details

This is an interesting question about the detail of the working of the split year rules under the Statutory Residence Test.

For the information of anyone who is interested in this area, the split year rules apply where there is UK residence in the previous year, and non UK residence in the subsequent year (and vice versa). The split year rules for “leavers” then consider three Cases. Case 2 is not relevant here.

For Case 1, the “overseas” part of the year starts with the first day on which the individual did more than three days of work overseas (or sometimes on a later date). Here that is 3rd January 2017.

For Case 3, the overseas part of the year starts when there ceases to be a UK home (and various other conditions are met). This appears to be 14th October 2016.

Therefore both Case 1 and Case 3 potentially apply. Where that occurs, Case 1 has precedence. (The rule is to be found in Finance Act 2013 Schedule 45 para 54). Hence the overseas part starts on 3rd January 2017.
 
1 - 2 of 2 Posts
Top