UK Tax Residency

Strategic Management of the Statutory Residence Test (SRT)

"As of April 2025, the UK has shifted to a purely residence-based tax system. Domicile is no longer the primary factor for worldwide taxation. Understanding your 'day count' and 'UK ties' is now the only way to protect your global assets from the UK tax net."

— ProACT Partnership Tax Team

Determining UK Tax Residency

Tax residency is determined by the Statutory Residence Test (SRT). This is a mechanical test applied in a specific order: first, the Automatic Overseas Tests; second, the Automatic UK Tests; and finally, the Sufficient Ties Test.

1. Automatic Overseas Test

You are Non-Resident if you meet any of these:

You spend fewer than 16 days in the UK (if resident in any of the previous 3 years).
You spend fewer than 46 days in the UK (if non-resident for the previous 3 years).
You work full-time abroad (averaging 35 hours/week) and spend fewer than 91 days in the UK.

2. Automatic UK Test

You are Resident if you meet any of these:

You spend 183 days or more in the UK in a tax year.
Your only home (or main home) is in the UK for at least 91 days, and you use it for at least 30 days in the tax year.
You work full-time in the UK for a period of 365 days.

3. The Sufficient Ties Test

If your status is not clear from the automatic tests, HMRC looks at your "ties" to the UK. The more ties you have, the fewer days you can spend in the UK before becoming a resident.

The Five UK Ties:

Family Tie: Spouse, civil partner, or minor children resident in the UK.
Accommodation Tie: Available UK accommodation for 91+ days, used for at least 1 night.
Work Tie: Working in the UK for 40+ days (at least 3 hours per day).
90-Day Tie: Spent more than 90 days in the UK in either of the last 2 tax years.
Country Tie: (For leavers only) Spending more days in the UK than any other single country.

Sufficient Ties Table (For "Leavers")

Use this table if you were resident in the UK for 1 or more of the 3 years before the current tax year:

Days Spent in UK	UK Ties Needed for Residency
16 to 45 Days	At least 4 ties
46 to 90 Days	At least 3 ties
91 to 120 Days	At least 2 ties
121 to 182 Days	At least 1 tie

The New 4-Year FIG Regime

Replacing the old "Non-Dom" system on 6 April 2025, the Foreign Income and Gains (FIG) regime provides a 100% tax exemption on foreign income for your first 4 years of UK residency, provided you were non-resident for the 10 years prior.

No Remittance Basis: You can bring the money into the UK without tax.
After 4 Years: You will be taxed on your worldwide income (Arising Basis).

Summary

The UK residency rules are strictly day-count based. Even a single day (defined as being in the UK at midnight) can change your tax status. ProACT Partnership recommends keeping a rigorous "Day Count" log if you spend between 45 and 180 days in the UK annually.