ACCA Advanced Taxation (ATX) Practice Exam

What is one of the key requirements for automatic non-UK residency?

1. Staying in the UK for less than 31 days

2. Not being UK resident in any of the previous three years

3. Working full-time in the UK

4. Keeping a home and assets in the UK

The correct answer is: Not being UK resident in any of the previous three years

One of the key requirements for automatic non-UK residency is that an individual must not have been a UK resident in any of the previous three tax years. This condition is part of the Statutory Residence Test, which determines an individual's tax residency status in the UK. When a person has not been a resident in the previous three years, they may be classified as automatically non-resident for the current tax year, provided they meet additional criteria concerning their day count in the UK. This is significant because it provides some clarity and assurance to individuals who may have been living abroad and wish to maintain their non-resident status, especially if they have begun to establish their life and work in a different country. The other options relate to different aspects of residency status in the UK, but they don't automatically confer non-resident status: merely staying for less than a specific number of days, working full-time, or keeping a home or assets in the UK may involve different considerations and thresholds that do not guarantee non-residency.