SA109 : Non Resident Case Study 2 - Leaving UK & Split Year Treatment partner joins at later date.

SA109 : Non Resident Case Study 2 - Leaving UK & Split Year Treatment partner joins at later date.

CASE STUDY 2 


Case Study 1 RECAP:

'Venessa left the UK on 1 November 2019 to work permanently in France. She currently completes a tax return as she receives dividend income from her UK investments and also rents out a property. She has always been UK resident. She started work in Paris on 7 November 2019 and will work on average 40 hours per week. She will occasionally be required to attend business meetings in the UK. She is keeping the house she lived in vacant and will come back to the UK periodically to visit family and friends.’ 


Further information for Case Study 2: 


She was joined in Paris on 1 December 2019 by her partner Liam. He normally lives with Venessa in the UK and has always previously been UK resident. He only has income from the rental property owned jointly with her. 


FAQ: 


Q.      What is Liam’s residency status for 2019/20? 


A.      Liam was UK resident in 2018/19. He will be UK resident for 2019/20 under the automatic residence test as he spends 183 days or more in the UK. 


2019/20 is a split year for his partner Venessa under Case 1 (as per Case study 1). Liam and Venessa had been living together in the UK.
  

Liam's main home is now in Paris, therefore, 2019/20 will be a split year for Liam under Case 2 provided; 

  1. He does not exceed the maximum number of days of presence in the UK after 1 December 2019 (which is 90 days scaled down as appropriate for part years); and 
  2. He is non-UK resident in 2020/21. 
Assuming Case 2 applies, Liam will be non-UK resident from the date on which he joins his partner overseas (being 1 December 2019). 


Q.      What pages will Liam need to include on his tax return for 2019/20? 


A.      Liam will have to include the following pages on his tax return: 

  1. Property (SA105) – Rental income
  2. Residency (SA109) – Date left UK, split year, personal allowance 

 


Q.      Will Liam have to complete a tax return for 2020/21? 


A.      Yes, Liam will have to submit a tax return for 2020/21 and every year he continues to receive rental income. He will have to include the following pages on his tax return: 

  1. Property (SA105) – Rental income
  2. Residency (SA109) – Days visited UK, personal allowance