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Statutory Residence Test and Reforms to Ordinary Residence

Volume 546: debated on Thursday 21 June 2012

In June 2011, the Government consulted on introducing a statutory residence test and reforming the concept of ordinary residence.

On 6 December 2012, the Government announced that legislation would take effect from April 2013, rather than April 2012 in order to give the time to consider the detailed issues raised in consultation.

The Government are today publishing their response to the 2011 consultation together with draft legislation to be included in Finance Bill 2013. This sets out the changes that will be made to the statutory residence test following consultation and confirms that ordinary residence will be abolished as announced at Budget 2012. It also contains further consultation questions on which the Government invite comments. The document is available on the HM Treasury website at:

http: residence_test.htm

The Government remain committed to their timetable of introducing the statutory definition of tax residence and reforms to the concept of ordinary residence in Finance Bill 2013.