Introduction and residence status

In this lesson

1. 0:00 Overseas income tax and residence status overview
2. 1:19 Statutory residence tests explained
3. 2:19 Automatic non-UK resident test criteria
4. 4:01 Automatic UK residence test criteria
5. 5:21 Sufficient ties test and UK connections
6. 7:14 Using the ties table to determine residency

About this lesson

The rules have changed significantly, with domicile status no longer applying, so understanding the new statutory residence tests is essential for both exam success and real-world application. You'll work through three key tests in order: the automatic non-UK resident test (which looks at days in the UK, previous residency, and overseas work), the automatic UK resident test (which considers days present and ties to the UK), and the sufficient ties test (which evaluates family, accommodation, work, and other connections). Each test uses specific day thresholds—16, 46, 91, 183—that determine whether someone is automatically classified or requires further assessment. The sufficient ties test is the most nuanced, as it depends on how many UK connections an individual has and whether they were previously resident. You'll learn to apply a table-based approach to decide residency when someone doesn't clearly pass the first two tests. This knowledge directly supports Taxation (TX) and Advanced Taxation (ATX) papers, where overseas income and residence status form the basis for determining which income is taxable in the UK. By the end of this lesson, you'll be confident identifying an individual's residence status from a scenario, which unlocks your ability to apply the correct tax rules to their worldwide or UK-only income.

Duration: 9m