ACCA Advanced Taxation (ATX) Practice Exam

What is one factor considered in the country tie for the sufficient ties test?

1. Whether the individual has family overseas

2. Whether they have spent more time in the UK compared to other countries

3. Whether they own any property abroad

4. Whether they have worked in various countries

The correct answer is: Whether they have spent more time in the UK compared to other countries

The sufficient ties test is utilized to determine an individual's residency status for tax purposes in the UK. One key factor considered in this test is the amount of time an individual has spent in the UK compared to other countries. This is particularly important as it directly influences their connection to the UK; spending more time in the UK is a strong indicator of residency. The number of days spent in the UK helps to establish whether the individual qualifies as a resident or non-resident for tax reasons, thus affecting their tax obligations. Given the options, focusing on time spent in the UK provides a clearer and more definitive connection to residency status. Other factors, such as family ties, property ownership, or employment across borders, may also contribute to the overall circumstances of an individual, but they do not hold the same weight in determining the primary factor of residency under the sufficient ties test.