ACCA Advanced Taxation (ATX) Practice Exam

Which of the following conditions allows an individual to cease being classified as a UK resident?

1. Working part-time abroad

2. Moving to a non-UK home

3. Becoming a UK citizen

4. Gaining employment in the UK

The correct answer is: Moving to a non-UK home

To determine UK residency status, several factors are considered as outlined in the Statutory Residence Test. Individuals may cease to be classified as UK residents under certain conditions. Moving to a non-UK home is one significant condition that can lead to this change. When a person moves their primary residence outside the UK and establishes a permanent home in another country, this action is a strong indicator of non-residency. The new home needs to be a genuine and permanent arrangement, showing that the individual no longer intends to live in the UK on a long-term basis. This change signifies a shift in ties, reducing the likelihood of being classified as a UK resident. In contrast, working part-time abroad does not, on its own, alter residency status since an individual can work outside the UK but still maintain significant ties to the UK. Becoming a UK citizen does not dictate residency status; a citizen can be a resident anywhere in the world. Additionally, gaining employment in the UK typically reinforces residency, as it suggests a strong connection to the UK. Therefore, the act of moving to a non-UK home stands out as a definitive basis for ceasing to be classified as a UK resident.