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21 February 2014 / Peter Vaines
Issue: 7595 / Categories: Features , Commercial
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Taxing matters

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Peter Vaines reports on a double dose of residency tests, the tax consequences of void transactions, penalties & costs

It will take time before the uncertainties in the new statutory residence test are resolved and it is only residence nerds who will keep agonising over all the various technicalities now. However, occasionally, something important pops up which deserves wider comment.

Under the automatic UK residence test, you will be conclusively UK resident if you have a UK home which is available to you for more than 91 consecutive days and you spend more than 29 days in it. So being in the UK for 30 days can be enough to make you resident. This could be an unpleasant surprise.

This will not apply if you have an overseas home where you spend more than 29 days during the year. However, a holiday home will not count. So you have a home in the UK and you have a home in France and you spend 30 days in your French home, then you are in the clear as far as the automatic UK test is concerned.

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Anthony Collins—20 promotions

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