Shine a light

For many years the practice and guidance relating to the subject of residence status was found in the HMRC booklet IR20.

With effect from 6 April 2009 this has been replaced by the new booklet HMRC6 which – to all intents and purposes – was published without public consultation on 31 March 2009 thus giving those coming to or leaving the UK six days’ notice of the new rules. In order to understand the changes in their context it is helpful – indeed I think necessary – to understand a little of the history behind the subject.

The topic of residence was considered by the Income Tax Codification Committee (1936) which included all the leading UK tax figures of the day. The committee made three points.

First it noted that the meaning of residence was ‘of the first importance’...