RFIG21080 - Statutory Residence Test (SRT): Split year treatment: Case 1 - The UK and overseas parts of the tax year
Source: gov.uk (2025-04-04)


The UK part of the tax year is the period from the start of the tax year until the start of the overseas part.

Example 1

Richard has lived and worked in London for the last 10 years and is UK resident for tax purposes. He is seconded abroad by his employer for a 3 year period. His overseas contract starts on 3 November 2014, when he takes up duty at his new office in Madrid. For the purposes of this example Richard fails the third automatic overseas test for 2014-2015 but meets it for 2015-2016.

On 2 December 2014 Richard returns to the UK office to finish off a project he was involved in before his secondment. His work in the UK is completed on 16 December 2014, (11 UK workdays and 4 non-working days). He then takes leave until 28 December (12 days), flying back to Madrid and resuming work on 29 December. On his return to Madrid he works only at the Madrid office until 5 April 2015.

Richard calculates that he meets the criteria for Case 1 split year treatment from 3 November, this being the first date on which he works for more than 3 hours overseas. Using the table at RFIG21070 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig21070) he calculates that between 3 November 2014 and 5 April 2015 he can spend 37 days in the UK and work for more than 3 hours in the UK for up to 12 days.

Richard determines that:
- he was UK resident for the previous tax year (2013-2014)
- he is resident in the UK for the current year (2014-2015) and that he does not meet the third automatic overseas test
- he was non-UK resident for 2015-2016
- he calculates he meets the sufficient hours overseas test for the period 3 November 2014 to 5 April 2015
- he did not exceed the limits of 12 UK work days and 37 days spent in the UK between 3 November 2014 and 5 April 2015, and
- he had no significant break from overseas work during the period.
To determine that he worked full-time overseas during the relevant period, Richard undertook the following calculation.

His reference period:

Days in period 3/11/14 to 5/4/15 = 154

Less:
- Disregarded days 11
(days spent working in the UK for more than 3 hours)

(Leave on 17, 18, 19, 22, 23 and 24 December)

(20 and 21 December)

Total 19

Reference period = 135 days

Sufficient hours test

All hours worked overseas from 3 November 670

Less

Hours worked on disregarded days Nil

Net overseas hours 670

Divide reference period by 7 (135/7) = 19.28 round down to 19

Divide net overseas hours by 19 (670/19) = 35.26

Richard meets the sufficient hours overseas test because his average over the reference period, (3 November 2014 to 5 April 2015) is more than 35.

For Richard the UK part of the tax year ends on 2 November 2014, and the overseas part starts on 3 November 2014 – the earliest date from which he meets all the conditions of the sufficient hours overseas test.

Example 2

Amanda has been living in the UK since she was born and is UK resident for tax purposes. She has worked in the media industry for 5 years and gets a job as a reporter on a 3 year contract based in India. She moves there on 10 November 2013, and lives in an apartment provided by her new employer. She meets the overseas work criteria from 10 November 2013.

She returns to the UK to visit her family over the Christmas period for 2 weeks, and does not work while she is there.

Amanda remains working in India throughout the tax year 2014-2015, again only returning to the UK for a 2 week period over Christmas.

Amanda will receive split year treatment for 2013-2014 tax year because:
- she was UK resident for 2012-2013 and 2013-2014
- she is non-UK resident for 2014-2015 and meets the third automatic overseas test for that year
From 10 November 2013 until 5 April 2014 she:
- does not work at all in the UK
- spends 14 days in the UK, which is less, by reference to the table at RFIG21070 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig21070), than the permitted limit of 37 days.
For Amanda, the UK part of the tax year will end on 9 November 2013, and the overseas part of the tax year will start on 10 November 2013.

The overseas part of the tax year starts on the first day of the relevant period, as long as the individual meets the overseas work criteria for that period (refer to RFIG21060 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig21060)).