Understanding the UK’s Statutory Residence Test (SRT)

Introduction

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Determining whether you are a UK tax resident is one of the most important steps in understanding your tax obligations. Your residency status dictates whether you pay UK tax on worldwide income or only on UK-source income.


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The UK’s Statutory Residence Test (SRT), introduced in 2013, provides a structured and objective framework for establishing tax residence in a given tax year. While it offers greater clarity than previous rules, it’s still a complex system that needs to be worked through carefully — and in the correct order.


In this blog post, we’ll break down how the SRT works, the order in which the rules are applied, the different components (including the automatic overseas and automatic UK tests, as well as the sufficient ties test), and how split year treatment may apply if you arrive or leave the UK mid-year.

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📌 Overview of the Statutory Residence Test (SRT)

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At high level, your resident status is determined according to a test created by HMRC called the Statutory Residence Test (‘SRT’).


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The SRT determines whether you are resident or non-resident for a particular tax year and your resident status determines what sources of incomes and gains you will pay tax on to HMRC.


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To determine your resident status, you must work through a series of tests, split into three categories. The three categories are ranked in priority starting with 1) the automatic non-resident tests, then 2) the automatic resident tests, then 3) the sufficient ties test.


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Once your personal circumstances and travel pattern satisfy one of the tests, this will conclude your resident status for the tax year in question.


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If you are resident, you will be liable to UK taxation on worldwide incomes and gains.


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If you are non-resident, you will be liable to UK taxation on UK sourced incomes and UK property gains only.

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🌍 Automatic Overseas Tests

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In order to be considered automatically non-resident for a complete tax year (period from 6 April to 5 April), you can:


Physical presence

• Reduce physical presence in the UK to no more than 15 days. This increases to 45 days once you have been non-resident for 3 complete tax years.

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Full time work abroad (’FTWA’)

• Work 35 hours + overseas per week and reduce physical and working presence in the UK. You can achieve this non-resident status even if you work for a UK employer - what matters is where you physically exercise work duties.

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🇬🇧 Automatic UK Tests

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In order to be considered automatically resident for a complete tax year (period from 6 April to 5 April), you can:


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Physical presence

• Be present in the UK at midnight on more than 182 days.


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UK home

• Have access to a home in the UK and no access to a home overseas.


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Full time work UK (‘FTWUK’)

• Work 35 hours + in the UK per week and reduce  working presence overseas. You can achieve this resident status even if you work for an overseas employer - what matters is where you physically exercise work duties.

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🔗 Sufficient Ties Test

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In the event that you are not conclusively non-resident or resident, the sufficient ties test will determine your resident status.

The sufficient ties test weighs up the number of midnights you spend in the UK against the number of ties you have to the UK, per tax year period. 


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The UK ties are as follows:


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• Family tie: if your immediate family are resident in the UK.
• Accommodation tie: if you have a place to sleep in the UK during return trips
• Work tie: if you exercise 40 or more workdays in the UK.
• 90 day tie: based on your presence in the UK in the two prior tax years.
• Country tie: based on where you spend the most amount of time in the tax year.


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If the combination of ties and midnight are you are above a threshold, you will be resident and if the combination of ties and midnights are below a threshold, you will be non-resident.

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🌓 Split Year Treatment

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In certain situations, a tax year can be split into a UK resident part and a non-resident part, to reflect a change in residency during the year known as split year treatment.


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Split year treatment is not automatic — you must meet specific criteria under one of eight cases set out in legislation (e.g., start full-time work abroad, join a UK-resident partner, cease to have a UK home, etc.). If granted, you will:


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• Pay UK tax on worldwide income during the UK resident part of the year
• Pay UK tax on UK-source income only during the non-resident part


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This can significantly reduce your UK tax bill if you arrive or depart partway through the year.

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✅  Summary: SRT Flow in Priority Order

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Check Automatic Overseas Tests

👉 If you meet one, you're non-resident

If not, check Automatic UK Tests

👉 If you meet one, you're UK resident

If neither applies, use Sufficient Ties Test

👉  Residency depends on ties + days

Consider Split Year Treatment

👉 May apply if arriving or leaving the UK mid-year

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🧠 How Global Tax Consulting Can Help

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At Global Tax Consulting, we help individuals with international ties, foreign income, and mobile lifestyles understand their UK tax residence position — and plan accordingly.


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Whether you're:


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• A foreign national moving to the UK
• A UK citizen moving overseas
• Unsure if you qualify for split year treatment
• Looking to minimise tax exposure on foreign income


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… our team can guide you through the Statutory Residence Test and help ensure you remain compliant while optimising your tax position.