RFIG21160 | Statutory Residence Test (SRT): Split year treatment: Case 4 - The overseas and UK parts of the tax year

The overseas part of the tax year starts at the beginning of the tax year and ends the day before the earliest point at which an individual meets the only home test.

The UK part of the tax year is the period from the end of the overseas part until the end of the tax year.

Example

Olan has been working for his employer in Germany for the last 5 years. He has no UK ties and was not resident in the UK. On 1 June 2013 Olan moves to the UK to look for work here. He rents out his apartment in Germany on a 2 year lease, from 27 May 2013.

Olan arrives in the UK and stays in temporary accommodation while he finds an apartment to rent. He signs a 12 month lease on an apartment in London on 1 July 2013.

He starts UK employment on 22 July 2013 and remains in the UK for a further 2 years.

Olan receives split year treatment for 2013-2014 as he meets the Case 4 conditions:

• he is non-UK resident for 2012-2013

• he started to have his only home in the UK during the tax year and that continued until at least the end of the tax year

• he had no UK ties from 6 April 2013 to 1 July 2013

For Olan the overseas part of the tax year will end on 30 June 2013, and the UK part of the tax year will start on 1 July 2013, the day he started to have his only home in the UK.

Note: Olan might also meet the criteria for Case 5 or Case 8 split years, but priority is given to that case where the overseas part of the tax year is the shortest.