Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Residency U.K. Style

Author: Scarinci Hollenbeck, LLC

Date: February 12, 2014

Key Contacts

Back

Determining residency is a difficult task under a facts and circumstances test where the outcome may be subject to interpretation. The United Kingdom (U.K.) faces unique issues because of the existence of the Commonwealth and the mobility of residents between member states. The U.K. has fashioned tests designed to make clear whether an individual is a resident or non-resident for purposes of U.K. taxation.

If one of three tests is satisfied, the individual will be a tax resident. An individual is a tax resident if he or she is present in the U.K. for 183 days in a year or has a home in the U.K.  The third test is satisfied if you were resident in the U.K. three of six years preceding death or have a home in the U.K.

The failure to satisfy these tests, you are left with the “sufficient ties” test, which looks at a combination of factors with the number of days spent in the U.K.

The non-resident automatic tests are (i) 183 days in the U.K.; (ii) one has not been a resident in the U.K. for the past three years and spend less than forty-six (46) days in the year in question.

There are four ties. The family tie is a spouse or civil union partner or child under 18 in the U.K.  The accommodation tie, if you have a place to live or available to you in the U.K.  The third tie is work in the U.K. for forty days. Fourth is if you spent 90 days in the U.K. in the current or preceding year. There is a fifth test if you are resident in the U.K. in the prior three years.  You count the number of days spent in the U.K. and if more than days spent in any other country.

The United States has separate rules for federal income taxation (“FIT”) and for federal estate taxation (“FET”). A lawful permanent resident is generally a resident from the start of the year in which he is physically present in the U.S., while holding a permanent residence visa (green card).  If the lawful permanent resident satisfied the substantial presence test and green card test, residency begins on the earlier date.  The rules are a bit more detailed and complex than the overview. A Resident Alien is taxable as either (i) a lawful permanent resident; (ii) satisfies the substantial presence test and does not qualify for the exception under the closer connection with another country; or (iii) elects to be taxed as a U.S. resident.

Non-resident aliens, physically present in the United States for 183 days or more in the current year or who satisfy the “lookback test” are subject to FIT. The later requires the individual to be present for 31 days in the current year and for 183 days or more over the sum of the current year, one-third of the days in the preceding year and one-sixth of the second preceding year.

FET and Gift tax focuses on domicile and the test is broader in scope. A person acquires domicile by residing in a place, even for a brief period of time, with no definite intention of remaining. I observe that ascertaining the intent of a decedent can be difficult. This places a premium on planning.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators post image

Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators

NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators"
What is Business Law and Why Is it Important? post image

What is Business Law and Why Is it Important?

Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]

Author: Dan Brecher

Link to post with title - "What is Business Law and Why Is it Important?"
Corporate Transactions: Best Practices for Successful Deals post image

Corporate Transactions: Best Practices for Successful Deals

Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]

Author: Dan Brecher

Link to post with title - "Corporate Transactions: Best Practices for Successful Deals"
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!