Your UK residence status affects how much tax you pay in the UK and, in particular, whether your foreign income and gains are subject to UK tax.
In simple terms, UK residents are normally taxed on their worldwide income and gains, while non-residents are generally only taxed on UK-source income and certain UK assets.
Residence status is mainly determined under the Statutory Residence Test, which looks at the number of days spent in the UK together with other connections you may have here.
You may be resident under the automatic UK tests if:
- you spent 183 or more days in the UK in the tax year
- your only home was in the UK for 91 days or more in a row – and you visited or stayed in it for at least 30 days of the tax year
- you worked full-time in the UK for any period of 365 days and at least one day of that period was in the tax year you’re checking
You may also be resident under the sufficient ties test if you have spent time in the UK and have family, work or property ties to the UK.
On the other hand, individuals working full-time overseas and spending limited time in the UK may qualify as non-resident under what is known as the overseas tests.
Special split-year rules can sometimes apply when moving into or out of the UK, meaning the tax year is divided between resident and non-resident periods.