The Chartered Institute of Taxation (CIOT) has welcomed the publication today of draft legislation on the introduction of a statutory residence test for tax purposes.
Legislation on this area is expected to be introduced in Finance Bill 2013.
John Barnett, Chairman of the CIOT’s Capital Gains Tax and Investment Income Sub-Committee, commented:
“The rules on tax residence are messy and uncertain and a long way from what we need for a modern tax system. Moving to a statutory test will give businesses and individuals greater certainty in an increasingly mobile world.
“We welcome the publication of more detail on the definitions in the test, such as what constitutes a UK work day. There are still some detailed points to iron out but the legislation is definitely heading in the right direction.
“For us the aim is a test that delivers certainty, produces clear results and is as simple as possible.
“The Treasury are right to have taken their time over this legislation to make sure they get it right. The SRT is too important to rush. Although discussions have taken nearly five years, we see this as a good example of how to make good tax law.”
Notes to editors
- The draft legislation is available on the Treasury website at:
http://www.hm-treasury.gov.uk/d/condoc_responses_srt_or_summary.pdf
Technical Team
21 June 2012
