There are three elements to the SRT: the ‘automatic overseas tests’, the ‘automatic UK tests’ and the ‘sufficient ties tests’.
The Statutory Residence Tests was introduced to clarify an individual’s residency status- by completing the tests sequentially, you will then have clarity with regards your tax residency status. There are three key components.
Automatic Overseas Tests
The first is the ‘automatic overseas tests’. If you meet the automatic overseas tests criteria then you are automatically deemed non-resident for that tax year. This is irrespective of whether or not you satisfy any of the automatic UK tests or the sufficient ties tests.
Automatic UK Tests
The second component is the ‘automatic UK tests’. If you meet any of the automatic UK tests criteria (and do not meet any of the ‘automatic overseas tests’), then you are automatically resident in the UK for that tax year.
Sufficient Ties Test
Finally, there are the ‘sufficient ties tests’. If you do not meet the automatic overseas tests or any of the automatic UK tests, you must then use the sufficient ties tests to determine your tax residence status. This test requires you to look at a table that details both the number of days spent in the UK and the number of ties you have to the UK. The ties are:
- Family tie
- Accommodation tie
- 90-day tie
- Work tie
- Country tie
The specific questions are quite detailed, so if you would like to know more about the SRT visit HMRC’s website