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STOP PRESS: The remittance basis is to be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in Finance Bill 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

Residence is an important tax concept as it determines whether an individual is liable to UK income tax, capital gains tax and inheritance tax. Residence must be decided on a year-by-year basis.

The statutory residence test applies from 6 April 2013. The test applies for income tax, capital gains tax and inheritance tax, but not for national insurance purposes. All existing law, case law and guidance are superseded for tax years following the introduction of the test.

This guidance note considers the rules in place for determining residence up to and including the 2012/13 tax year. For details of the statutory residence test, see the Determining