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Tax residency, International tax, UK tax, Executives


With the global economy, many US executives are sent to the United Kingdom (UK) and/or other parts for Europe to work for short-term or long-term assignments. Even if based in the United States or continental Europe, executives of global corporations can often work in the UK. These executives can be resident in more than one country under the tax laws of each country in which the executive works. Since the UK taxes persons who are resident in the UK, it is important to ascertain whether the executive is so resident under UK law.

Before April 6, 2013 there was no statutory definition of residence in the United Kingdom (UK). Much of the practical definition came from the courts and the government’s publications. There were generally two definitions; ‘resident’ and ‘ordinary resident’. At this time a major tax case, the Gaines-Cooper case, was going through the courts eventually being finally decided in the Supreme Court. It was generally considered that this case gave the impetus to the government to clarify the definition of resident by statute. This statute was the Finance Act 2013 (FA 2013). Section 218 and Schedule 45 FA 2013 set out the new statuary rules for a taxpayer. This paper explains the new rule in detail.

Published in

International Tax Journal

Citation/Other Information

40(3), 39-48.

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Creative Commons Attribution-Noncommercial 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial 3.0 License

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