ACCA Advanced Taxation (ATX) Practice Exam

Can the tax year be split if the individual is not a UK resident?

1. True

2. False

3. It depends on the individual’s income

4. Only if they have overseas income

The correct answer is: False

A non-resident individual is not subject to UK tax on their worldwide income, but only on their UK income, which makes the concept of splitting the tax year less relevant for them. In the UK tax system, splitting a tax year typically applies to qualifying individuals who are resident and who may need to account for periods of residency or non-residency. For non-residents, their tax affairs are handled under different rules, and they do not benefit from splitting the tax year in the same way that residents do. Splitting the tax year is generally associated with ensuring that the correct amount of tax is calculated during periods when an individual becomes a UK resident or ceases to be a resident, focusing on how income is apportioned during those transitional periods. Non-residents are governed by a different regime, which simplifies the issue, thus confirming that the tax year cannot be split for those who do not have residency status in the UK.