PWM International

UK tax residence

To plan for your personal taxation in the UK under the new residence-based regime, it’s essential to understand and track your residence status.

Our specialist International advisers are well equipped to help, with years of experience handling domicile and residence issues alongside all other aspects of cross-border financial planning. 

An introduction to the FIG regime An introduction to statutory residence test

Understanding the new UK residence-based tax regime

From 6 April 2025, the UK government replaced the previous tax rules for non-UK domiciled individuals with a residence-based regime. The new regime moves away from the concept of domicile to the more direct determination of residence to define your individual UK tax status.  

 

Understanding the Statutory Residence Test (SRT) 

The Statutory Residence Test (SRT) is how the UK government determines your position as UK tax resident for any given tax year. Although the rules seem relatively straightforward, there are over 200 pages of notes accompanying them – so we highly recommend you seek advice on how they apply to you. 

Each tax year, your residence status will be examined individually using the SRT, so your status may change from year to year. To determine your residence status, you progress through three ‘tests’, only moving onto the next stage if needed: 

  1. Automatic non-residence test 
  2. Automatic UK residence test 
  3. Sufficient ties test 

It is the ‘sufficient ties’ test which determines how many days trigger tax residence. To make this determination, the test considers your connections with the UK together with your status as a leaver or a new arrival.  

In some circumstances, you might only need to be present in the UK for 16 days before becoming tax resident. In others, you could be present in the UK for 182 days without being tax resident. 

Our Introduction to the Statutory Residence Test can help you understand these considerations, but we recommend you seek professional advice if there is any uncertainty. 

How we can help 

When you work with us, you can be confident that your financial advice is backed by extensive experience with complex, cross border situations as well as in-depth knowledge of the UK tax regime.  

Our International team has worked with the concepts of domicile, remittance, and mixed funds on behalf of our clients for years, and our participation in HMRC’s consultations on the new regime means we really understand the detail. We’ll use this experience alongside our robust methodology and vast professional network to advise and support you to optimise your financial affairs no matter your residency status. 

Nathan Prior

For further information

To find out more about how we can help you with no obligation, please contact  Nathan Prior, Partner and Head of PWM International.

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Keep up-to-date with UK tax residence law with our informative insights and guides.
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