HMRC's new rules on tax residency explained

June saw the issue of two HM Revenue & Customs (HMRC) consultations of great interest to those who advise international clients. 1. Statutory definition of tax residence The consultation on a statutory definition of residence concedes that the current rules are “vague, complicated and perceived to be subjective.” The objective is to introduce a statutory test that is “transparent, objective and simple to use.” The uncertainty in the current rules mainly affects individuals with complicated circumstances – those who travel to and from the UK regularly or those who have connections wi...