22 Mar 2026 2 min read Statutory Residence Test

Understanding the Statutory Residence Test for UK Tax Purposes

The Statutory Residence Test determines whether you are UK resident for tax purposes — affecting your liability for income tax, CGT, and more.

Your UK tax residency status determines how much of your worldwide income and gains are subject to UK tax. Before 2013, residence was determined by a complex mix of case law. The Statutory Residence Test (SRT), introduced in Finance Act 2013, provides a clearer framework — though it remains complex in practice.

Why Residence Matters

UK residents are generally liable to UK income tax and Capital Gains Tax on their worldwide income and gains. Non-UK residents are only liable on their UK-source income and (since 2015 for residential property and 2019 for commercial property) on UK property gains. Getting your residence status wrong can mean paying too much tax — or not enough, which HMRC will pursue.

The SRT: Three Steps

Step 1: Automatic Non-Residence Tests

You are automatically not UK resident if: you were not UK resident in the previous 3 tax years and spend fewer than 46 days in the UK in the current year; you were UK resident in at least one of the previous 3 tax years and spend fewer than 16 days in the UK; you work abroad full-time (at least 35 hours per week averaged) with no more than 30 days of UK work and fewer than 91 days in the UK total.

Step 2: Automatic Residence Tests

You are automatically UK resident if: you spend 183 or more days in the UK; you have a UK home (and no overseas home) and spend at least 30 days there; you work full-time in the UK for at least 365 days.

Step 3: The Sufficient Ties Test

If you are not automatically resident or non-resident, you assess UK ties: family tie (resident spouse or minor children in the UK); accommodation tie (you have accessible UK accommodation); work tie (work in UK for 40 or more days); 90-day tie (you spent 90+ days in the UK in either of the previous 2 tax years); country tie (if previously resident — the UK is the country in which you spend the most days). The more ties you have, the fewer UK days before you become resident: 16–45 days with 4 ties means resident; fewer ties permit more days without UK residency applying.

Split Year Treatment

If you arrive in or depart from the UK during a tax year, split year treatment may apply — dividing the tax year into a UK resident period and a non-resident period. This prevents double taxation in the year of arrival or departure. Split year cases must be reported on your Self-Assessment return.

Domicile

Domicile is a separate concept from residence. Your domicile of origin is typically your father's domicile at birth. It can only be changed with strong intent. Non-UK domiciled individuals living in the UK may have been able to use the remittance basis — paying UK tax only on foreign income and gains remitted to the UK. However, the non-dom remittance basis rules are being abolished and replaced from April 2025, so take specialist advice if relevant.