Kevin Read reminds readers of the anti-avoidance rules affecting temporary non-residents.
The statutory residence test (which took effect in April 2013) has made it possible to ascertain, with reasonable certainty, whether you are resident or non-resident in the UK for a particular tax year.
Temporary non-UK residents
Without anti-avoidance rules (in FA 2013, Sch 45, Pt 4) regarding temporary non-residents, it would be easy to become non-resident for one tax year, during which you could realise various amounts of income and gains and avoid UK tax on them.
These temporary non-residence rules apply if:
- you have sole UK residence in four of the last seven years; and
become non-resident for less than five years.