Government consults on definitions of ‘tax residence’ and ‘ordinary residence’Friday, June 24th, 2011
Proposals to clarify the tax status of individuals coming to work in the UK.
There are no statutory definitions of the terms “tax residence” and “ordinary residence”, with the result that there can be uncertainties over the tax status of individuals coming to work in the UK. A new consultation document, published by HM Treasury and HMRC, seeks the views of interested parties on proposals to introduce a statutory test for “tax residence”. In the case of “ordinary residence”, the options presented are to create a statutory definition or abolish the concept completely for most tax purposes.