Statutory Residence Test Delayed to April 2013

The introduction of a statutory test of residence for tax purposes has been delayed until 2013. This year’s consultation process has raised a number of detailed issues which the Government wishes to consider carefully to ensure that the test achieves its aim of providing certainty and transparency for individuals and businesses. A further announcement is expected at the time of the Budget in the spring.

Katharine Arthur, Tax Partner is disappointed that the test will not come into effect from 2012, as clarity and certainty are desperately required in this area. However, Katharine also recognises the commitment from both the Treasury and the professional bodies to get this test right, and welcomes the Government’s continuing commitment to introducing the statutory residence test.