We are frequently asked about UK tax residency by people who are relocating to the Isle of Man.
There are lots of online resources which will help you understand these tests and some of our favourites are listed below our summary. While it looks quite simple, take care as there are some traps and, as usual, the devil is in the detail so our summary below is not a substitute for professional advice. (Strongly recommended).
Also note there are special rules – not outlined here – which are relevant for people who are leaving the UK in the middle of a tax year – split year treatment; contact us for more information about this.
Important – You can find requirements for Isle of Man tax residence here but don’t assume that being an Isle of Man tax resident means you are a non UK resident. It is easy to become a dual Isle of Man / UK tax resident so understanding the UK Statutory Residence Test as set out in Finance Act 2013 is very important.
Are You Accidentally a UK Tax Resident?
Here’s How to Find Out — Before HMRC Surprises You
The UK Statutory Residence Test (SRT)
The UK Statutory Residence Test (SRT) is the official test used by HMRC (His Majesty’s Revenue & Customs) to decide if you are a UK tax resident in a tax year (6 April to 5 April).
Whether you’re a UK tax resident or not affects how much tax you pay on your worldwide income and gains.
The Test Works in 3 Stages:
You go through them in order. As soon as one applies — stop.
Step 1 — Automatic Overseas Test
This step helps you prove you are NOT a UK tax resident.
You are automatically non-resident if, during the tax year, you were in the UK for less than:
- 16 days
- 46 days & have not been UK resident in the last 3 years
- 91 days & work full-time overseas (and worked no more than 30 days in the UK)
If one of these fits you: Relax. You are not a UK tax resident.
Step 2: The Automatic UK Test
This step checks if you are definitely a UK tax resident.
You are automatically UK resident if, during the tax year:
- You spent 183 days or more in the UK
- OR you had a home in the UK for at least 91 days, and spent 30 days or more there (if you had an overseas home, you were present in it for fewer than 30 days in the tax year)
- OR you worked full-time in the UK for a year without significant breaks.
If this sounds like you: You are a UK tax resident.
Step 3: The Sufficient Ties Test
This step applies only if Steps 1 and 2 don’t decide it.
Now HMRC looks at 2 things:
- How many days you spent in the UK
- How many ties you have to the UK
Tie types:
- Family tie – Spouse or minor child lives in the UK
- Accommodation tie – You have a place to live in the UK that is available to you for at least 91 days in the tax year, and you spend at least one night there. This also applies if you stay in a close relative’s house for 16 nights or more.
- Work tie – You worked 40 or more days in the UK in the year
- 90-day tie – You have been in the UK 90 or more days in the last 2 years
- Country tie – You spent more days in the UK than in any other country (applies if you’re leaving the UK)
The more ties you have, the less time you can spend in the UK without becoming a resident.
| Days in the UK | Previously Resident | Previously NON-Resident |
| 0 – 15 | Not Resident | Not Resident |
| 16 – 45 | Resident = 4 ties | Not Resident |
| 46 – 90 | Resident = 3 ties | Resident = 4 ties |
| 91 – 120 | Resident = 2 ties | Resident = 3 ties |
| 121 – 182 | Resident = 1 tie | Resident = 2 ties |
| 183+ | Always Resident | Always Resident |
Being a UK tax resident is not just about where you feel you live. It’s about the days and the details.
Tax tips:
- Count your UK days carefully.
- Know your ties.
- Plan your travel smartly
Points to note:
- A day in the UK counts if you are in the UK at midnight (unless transiting)
- A work day in the UK means doing 3 hours or more of work in the UK on that day
