ACCA Advanced Taxation (ATX) Practice Exam

Which of the following is NOT a reason for an individual leaving the UK and becoming an overseas resident?

1. Beginning full-time work abroad

2. Ceasing to have any UK home

3. Accompanying a partner who has taken up full-time work overseas

4. Becoming a UK resident in a subsequent year

The correct answer is: Becoming a UK resident in a subsequent year

The correct answer relates to the definition of residency for tax purposes in the UK. An individual can leave the UK and become an overseas resident for various reasons, such as starting full-time work abroad, no longer having a home in the UK, or moving to accompany a partner who has secured work overseas. These actions typically indicate a person’s relocation and intention to remain outside the UK for an extended period. On the other hand, becoming a UK resident in a subsequent year does not directly contribute to the reasoning behind leaving the UK and establishing overseas residency. Instead, it signifies a change in circumstances that may lead one back into UK residency. The concept of residency is determined by specific criteria under the Statutory Residence Test, which looks at the number of days spent in the UK and the individual’s ties to the country, rather than the act of becoming a resident after leaving. Thus, the option highlighting the return to UK residency is the only one that does not align with the reasons for initially leaving the UK and establishing overseas residency, as it pertains to a change in status rather than a motivation for leaving.