Budget '08 analysis: residence and domicile

Day counting rules

As announced in the 2007 Pre-Budget Report legislation will be introduced in Finance Bill 2008 to change the way days are counted for residence test purposes. This change will have effect on and after 6 April 2008.

The Budget changes mean that on and after 6 April 2008 any day where the individual is present in the UK at midnight will be counted as a day of presence in the UK for residence test purposes.

There will be an additional exemption for passengers who are in transit between two places outside the UK. The exemption is wider than that proposed at the Pre-Budget Report as it caters for people who have to change airports or terminals when transiting through the UK.

It will also allow people to switch between modes of transport so they could fly in but leave by ferry or train for...