Determining an individual’s tax residence in the UK relies strictly on the Statutory Residence Test (SRT). For the 2026/27 tax year, establishing UK residence holds even greater significance. From 6 April 2025, the UK abolished the remittance basis of taxation and the concept of domicile for tax purposes, replacing them with the Foreign Income and Gains (FIG) regime.
Under the FIG regime, qualifying new residents who have been non-UK resident for 10 consecutive years receive 100% relief on foreign income and gains for their first four years of UK residence. Therefore, accurately applying the Statutory Residence Test (SRT) is the critical first step for any incoming or departing individual.
The Hierarchy of the Statutory Residence Test (SRT)
The SRT operates through a strict, hierarchical framework designed to provide objective “bright line” rules. You determine residence by applying three successive tests:
- Automatic Overseas Tests: If the individual meets any of these, they are automatically non-UK resident.
- Automatic UK Tests: If the individual meets none of the overseas tests but meets an automatic UK test, they are automatically UK resident.
- Sufficient Ties Test: If the individual meets none of the automatic tests, you must assess their connections to the UK against the time spent in the country.
“A person is resident in the UK for a year if either the automatic residence test or the sufficient ties test is met… The automatic residence test requires a person to meet none of the automatic overseas tests, and at least one of the automatic UK tests.”
The Sufficient Ties Test
When the automatic tests do not yield a conclusive result, the Sufficient Ties Test dictates residence based on a combination of days spent in the UK and the number of UK ties. The relevant ties include:
- A family tie
- An accommodation tie
- A 90-day tie
- A UK work tie
- A country tie (applicable only to those resident in the UK for one or more of the three previous tax years).
Determining Residence by Ties and Days
The threshold for becoming UK resident depends heavily on the individual’s residence status in the prior three tax years.
| Days spent in the UK in year X | UK ties needed (Resident in 1+ of previous 3 years) | UK ties needed (Not resident in previous 3 years) |
|---|---|---|
| Up to 15 days | Always non-resident | Always non-resident |
| 16 to 45 days | At least 4 ties | Always non-resident |
| 46 to 90 days | At least 3 ties | At least 4 ties |
| 91 to 120 days | At least 2 ties | At least 3 ties |
| Over 120 days | At least 1 tie | At least 2 ties |
Note: For individuals with “relevant jobs” (such as cabin crew or cross-border drivers), any cross-border trip starting in the UK counts as a UK work day, even if they spend less than three hours working in the UK that day.
Day Counting Rules and Exceptions
Day counting forms the mechanical foundation of the Statutory Residence Test (SRT).
The Midnight Rule
The core rule states that if an individual is present in the UK at the end of a day (midnight), that day counts as a day spent in the UK.
The Transit Exception
A day does not count if the individual arrives in the UK as a passenger, leaves the next day, and does not engage in activities substantially unrelated to their passage through the UK.
Exceptional Circumstances
The law allows individuals to disregard up to 60 days per tax year if their departure from the UK is prevented by “exceptional circumstances beyond P’s control”.
The courts strictly interpret this provision. In The Commissioners for HMRC v A Tax Payer [2023] UKUT 182 (TCC), the Upper Tribunal confirmed that the circumstances must objectively prevent the individual from leaving the UK, representing an objective impossibility rather than a mere moral obligation to stay.
“To be exceptional, a circumstance need not be unique, or unprecedented, or very rare; but it cannot be one that is regularly, or routinely, or normally encountered.”
Examples include national emergencies, war, natural disasters, or a sudden life-threatening illness.
Split Year Treatment
Normally, an individual is either UK resident or non-UK resident for the entire tax year. However, the SRT allows the tax year to be split into a UK part and an overseas part when individuals arrive in or depart from the UK.
The legislation outlines 8 specific Cases for split year treatment (Cases 1–3 for departures, and Cases 4–8 for arrivals).
For example, Case 1 applies to starting full-time work overseas, while Case 6 applies to ceasing full-time work overseas and returning to the UK. If multiple cases apply, priority rules dictate which case takes precedence.
To determine if a person works “full-time” overseas, a strict 5-step “sufficient hours” calculation applies, which subtracts disregarded days (where the person works more than 3 hours in the UK) and specific gaps from a 365-day reference period.
Double Taxation Agreements (DTAs) and Dual Residence
An individual might be resident in the UK under the Statutory Residence Test (SRT) while also qualifying as tax resident in another jurisdiction under its domestic laws. In these instances, you must consult the relevant Double Taxation Agreement (DTA).
Most DTAs follow the OECD Model Tax Convention, utilising an “Article 4 tie-breaker” mechanism to award sole treaty residence to one state. The tie-breaker applies the following tests in descending order:
- Permanent home: Where does the individual have a permanent home available to them?
- Centre of vital interests: If they have a home in both states, with which state are their personal and economic relations closer?
- Habitual abode: If the centre of vital interests cannot be determined, where do they habitually reside?
- Nationality: If they have a habitual abode in both or neither, of which state are they a national?
If the tie-breaker awards residence to the other state, the individual becomes “treaty non-resident” in the UK, which can restrict the UK’s taxing rights over certain income and gains, despite their UK residence under the SRT.
To further your research, consider reviewing the detailed rules for claiming the Foreign Income and Gains (FIG) relief on the SA109 return, and explore the specific priority ordering for the 8 split year cases under the SRT.
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