ACCA Advanced Taxation (ATX) Practice Exam

Which of the following is NOT one of the automatic UK residency tests?

1. 183 days spent in the tax year

2. 30 days spent in the tax year with only a home in the UK

3. Working full-time abroad for the entire year

4. 365 days continuously working full-time, some of which fall in the tax year

The correct answer is: Working full-time abroad for the entire year

The correct answer is that working full-time abroad for the entire year is not one of the automatic UK residency tests. The automatic residency tests determine an individual's tax residency status based on specific criteria related to physical presence and connections to the UK. The first criterion, regarding being present in the UK for 183 days or more in a tax year, establishes residency based simply on the number of days spent in the country. This is one of the most straightforward tests, making it a fundamental aspect of determining residency. The second test involves spending at least 30 days in the UK and having a home in the country. This criterion also emphasizes a combination of physical presence and having significant ties to the UK, which influences residency determination. The fourth option relates to being present in the UK for 365 days continuously while working full-time, with some of those days occurring during the tax year. This is relevant since it indicates ongoing ties to the UK, further contributing to residency status. In contrast, working full-time abroad for the entire year does not connect the individual to the UK in terms of physical presence or residential ties during that tax year. This situation means that the person is likely not subject to UK tax residency, thereby distinguishing it from the automatic tests that affirm residency through