Glossary · UK
What is Statutory Residence Test (SRT)?
The three-stage legal framework (from April 2013) determining whether an individual is UK tax resident in a given tax year, based on days in the UK and personal ties.
Full Definition
The Statutory Residence Test (SRT), introduced from 6 April 2013, provides a definitive set of rules for determining UK tax residence. Before 2013, residence was determined by HMRC practice and case law. The SRT has three stages applied in order. Stage 1 -- Automatic Overseas Tests: if any of these conditions is met (e.g. fewer than 16 UK days in the year, or the person worked full-time abroad with fewer than 91 UK days and no more than 3 UK working days), the person is automatically non-resident. Stage 2 -- Automatic UK Tests: if any of these is met (e.g. 183+ UK days, only or main home in UK for 91+ consecutive days, full-time work in UK), the person is automatically UK resident. Stage 3 -- Sufficient Ties Test: for those not caught by either automatic test, residence is determined by counting UK ties (family, accommodation, work, 90-day, and country ties) and comparing against the number of UK days. A "UK day" means being present in the UK at midnight. Split-year treatment can apply in years of arrival or departure, so that UK tax applies only from the date of arrival or up to the date of departure. UK residence means worldwide income and gains are taxable; non-residence means generally only UK-source income is taxable.