Automatic Overseas Test

1. > 16 days in UK
2. > 46 days in UK and not UK resident in previous three tax years
3. Work full-time overseas and not more than 90 days in UK

Automatic UK Resident Test

1. 183 days in UK
2. Home in UK and no overseas
3. Work Full-time UK

Sufficient Ties Test

1. Close Family
2. Available accomodation at least one night in UK
3. Substantive UK work
4. More than 90 days in UK in either or both previous two tax year
5. Same or more days in UK and any other country
Eg.1
a.
James is not UK resident because he meets automatic overseas test.
b.
Caroline is UK resident because she meets automatic UK test.
c.
Miranda is UK resident becauae she meets 3 UK ties, 80 days in UK and previous U
d.
Norman is not UK resident because he meets 1 UK ties and not previous UK reside

Eg.3
Non-saving
£
Employment Income 145,000
Property Business Income 10800

Total Income 155,800

Qualifying Interest Paid 0

Net Income 155,800

Personal Allowance 0
 Taxable Income 155,800

Income Tax Liability

Non-saving
37500x20% 7500
(150000-37500)x40% 45000
5800x45% 2610

Total tax liability 55110

Eg.8
Non-saving
£
Employment Income 148000
Bank Interest
Dividend

Total Income 148000

Qualifying Interest Paid 0

Net Income 148000

Personal Allowance 0

Taxable Income 148000

Income Tax Liability

Non-saving
37500x20% 7500
(148000-37500)x40% 44200

Saving
2000x40% 800
(6250-2000)x45% 1913
 Dividend
2000xNil% 0
(20000-2000)x38.1% 6858

Total Income Tax Liability 61270.5

Eg.12 Saving
£
Salary 110000 1

Total Income 110000

Qualifying Interest Paid 0

Net Income 110000

Personal Allowance -12500 2

Taxable Income 97500

Income Tax Liability

Saving
43750x20% 8750
(156250-43750)x40% 45000 112500

Total Income Tax Liability 53750

Eg.15 d.
£
Additional Property Business Income 25000
Personal Allowance will be nil if Adjusted Net Income > £125000
Additional Taxable Income 25000+12500
Additional Income tax liability
25000x40% 10000
(37500-25000)x45% 5625

Total Income tax liability 15625

Eg.3
Qualifying travel expenses is available for Philip's travel cost.
erseas test.

days in UK and previous UK resident.

nd not previous UK resident.

Eg.5
Non-saving Saving
£ £
Employment Income 41800
Bank Interest 5200

Total Income 41800 5200

Qualifying Interest Paid 0 0

Net Income 41800 5200

Personal Allowance -12500
 Taxable Income 29300 5200

Income Tax Liability

Non-saving
29300x20% 5860

Saving
1000xNil rate 0
(5000-1000)x0% 0
200x20% 40

Total Income Tax Liability 5900

Saving Dividend
£ £

6250
20000

6250 20000
0 0

6250 20000 174250

6250 20000 174250

110500

2000
4250
 18000

Adjusted Net Income £

Net Income 110000 Gross (5000/80)x100
Gid Aid Donation Gross -6250 6250
Personal Pension Scheme Gross 0
Total Adjusted Net Income 103750

Basic Rate = 37500+6250 43750

Higher Rate = 150000+6250 156250

37500
47000
34500