Statutory Residence Test

The statutory residence test or SRT exists to determine an individual’s tax status in the UK. Our statutory residence test guide gives you information to support you through the complexities of UK non resident tax.

What is the statutory resident test?

HMRC have brought in changes to non resident tax law from the 6th April 2013. To help decide your UK resident status you can use the Statutory Residence Test. Through a series of tests it is designed to establish whether or not someone is a UK resident, for the purposes of Income Tax, Inheritance Tax and Capital Gains Tax.

When do I use the statutory residence test?

The Statutory Residency test came into effect in April 2013 and is therefore only used from the tax year 2013-14 onwards. The previous tax years have different rules, and you should consider your resident status for these years separately.

What does the test involve?

Automatic overseas test

The first test one must take is the Automatic Overseas Test (AOT), which identifies those people who have minimal links with the UK. These people will be deemed non UK resident and usually will not need to pay tax on their UK earnings.

Automatic residence test and sufficient ties test

If the conditions of the AOT are not met, you may not be classed as non resident and so should take the Automatic Residence Test (ART) and then the Sufficient Ties Test (STT). The STT should only be taken upon completing the ART. International transport workers are those people who work whilst traveling over international borders, such as on an Airline Pilot. These workers have different rules to consider when completing the Statutory Residence Test.