Guide

Split-year treatment

The Statutory Residence Test gives one answer for a whole tax year. Split-year treatment is the exception: in the year you arrive in or leave the UK, the year can be divided into a UK part, where worldwide income is in scope, and an overseas part, where only UK-source income is taxed.

It is not optional and it is not automatic — you either meet the conditions of one of the eight cases or you do not. You must be UK resident for the year overall before split-year treatment can apply at all.

The eight cases

1. Case 1You start full-time work overseas part way through the year.
2. Case 2You are the partner of someone starting full-time work overseas.
3. Case 3You cease to have any home in the UK.
4. Case 4You start to have your only home in the UK.
5. Case 5You start full-time work in the UK.
6. Case 6You stop full-time work overseas and return to the UK.
7. Case 7You are the partner of someone stopping full-time work overseas.
8. Case 8You start to have a home in the UK during the year.

RDR3 part 5 / RFIG20000