Non residency status 90 days and 120 day rules

Papag3000

Hi there. A very specific question that I’m sure many working full time abroad have faced before, so looking for some guidance. I work full time in the Middle East and have followed the rule of <90 days in the UK for the past 3 years to maintain Non-residency status. Since I have now maintained this for 3 years I believe ( with 2 “ties” to the UK ), that I could now go up to 120 days. However, I’ve recently been advised that I could only do this for 1 year, I would then have to revert back to <90 days for the next 2 years ( because being in the UK>90 days in any of the previous 2 years becomes a third “tie”. ). This essentially means that I would be in a 3 year cycle of 2 years needing to be less than 90 days and 1 year less than 120 days. Can anyone advise if this advice was correct ? It seems illogical to only allow 120 days every 3 years. Thanks

Jeremy535897

Chapter and verse here:
https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3

Papag3000

Thanks Jeremy. Especially for the fast response. I’ve also read through these thoroughly and end up with the same conclusion as the advice given above. It just seems illogical to me hence the request if anyone with more experience can confirm the advice given 

Jeremy535897

It's not my area of experience, but look at it logically.
Did you meet the automatic overseas test 2 in each of the previous three years, or were treated as non-UK resident for other reasons for each of those three years? I presume the answer is yes from what you say?
Assume you spend 110 days in the UK in year 4. Clearly none of the automatic overseas tests applies. Presumably none of the automatic UK resident tests applies, as otherwise that's the end of the matter (see 3.2 for example in RDR3)? You are relying on Table B:

Table B:
UK ties needed if you were UK resident in none of the 3 tax years before the tax year under consideration

Days spent in the UK in the tax year under consideration
UK ties needed

46 - 90 All 4

91 - 120 At least 3

Over 120 At least 2

If you have only 2 ties to the UK, you are non-UK resident as you need at least 3 ties to make you resident. Had you been resident in one of the previous 3 years, you would be UK resident as 2 ties would suffice (Table A).
If you then spent 110 days in the UK in year 5, and assuming none of the automatic UK resident tests applies, you still use Table B, as you weren't UK resident in any of years 2-4. But as you say, because you spent over 90 days in the UK in year 4, you now have 3 ties, and so are back to 46-90 days, for year 5 and year 6.

Papag3000

Thanks Jeremy. Looks like you have also came to the same conclusion. Just seems weird that despite personal circumstances staying the same, the tax rules cause the number of days to change every 3rd year

Jeremy535897

Papag3000 said:

Thanks Jeremy. Looks like you have also came to the same conclusion. Just seems weird that despite personal circumstances staying the same, the tax rules cause the number of days to change every 3rd year

It's all because the 90 day tie comes into play. In some ways it's a bit like the old "ordinary residence" rules.