RFIG21280 | Statutory Residence Test (SRT): Split year treatment: Case 8 - The UK and overseas parts of the tax year

The UK part of the tax year starts on the date you have a home in the UK and continues until the end of the tax year.

The overseas part of the tax year is from the beginning of the tax year until the start of the UK part of the tax year.

Example

Nicola is retired, she is non-resident in the UK for tax purposes having lived in Cyprus for a number of years. She has a home in Cyprus and she also has a property in the UK which has been let out on a commercial basis for the last few years.

She recently became a grandmother, and decides she will split her time between Cyprus and the UK so that she can see more of her grandson, who lives in the UK.

She comes back to the UK and moves into the UK property when the rental agreement with her tenant expires on 4 August 2014. She now has 2 homes, 1 in each country.

Between 6 April 2014 and 4 August 2014 when she started to have a UK home, Nicola only spent 4 days in the UK, visiting her daughter; and therefore did not exceed the limit for days spent in the UK in the overseas period before she started to have a UK home.

Nicola meets the criteria for Case 8 for 2014-2015 on the basis that:

• she was not UK resident for 2013-2014

• she is UK resident for 2015-2016 (Nicola is possibly dual resident in UK and Cyprus)

• she continues to have a home in the UK for the rest of 2014-2015 and the following year

• she did not have sufficient UK ties to make her resident from 6 April 2014 until 4 August 2014

Nicola does not meet the criteria for Cases 4, 5, 6 or 7 split year treatment.

The UK part of the split year starts on 4 August 2014, which is when Nicola starts to have a home in the UK.