How will UK residency review affect your clients?

On 17 June 2011, a consultation document was published by HM Treasury which set out proposals for a statutory definition of tax residence. In the words of the document, the current residency rules are vague, complicated and perceived to be subjective. Given that tax residency determines an individual’s liability for both income tax and capital gains tax, this is an unsatisfactory state of affairs. The government therefore wishes to introduce a statutory residence test (SRT) that is transparent, objective and simple to use. The consultation period ends on 9 September 2011. The intentio...