BOOK REVIEW

TOLLEY'S STATUTORY RESIDENCE TEST
By Carolyn Steppler and Jane Scott

Tolley/ LexisNexis

ISBN: 978 0 7545 4801 0

www.lexisnexis.co.uk

DEMYSTIFYING HMRC'S NEW STATUTORY RESIDENCE TEST

An appreciation by Phillip Taylor MBE and Elizabeth Taylor of Richmond Green Chambers

True to the traditions of Tolley's, this latest publication from LexisNexis sets out, successfully in our view, to de-mystify and de-complicate an otherwise complicated new regulation. This one -- introduced in 2013 by HMRC -- is the new Statutory Residence Test, which determines the residence status of an individual for tax purposes.

Authors Caroline Steppler and Jane Scott, both at Ernst and Young LLP, have extensive experience in this field, providing expert advice mainly to private clients, many of them non-domiciled individuals and families. They point out that the statutory residence test, introduced by the Finance Act 2013, 'is arguably one of the most significant changes to personal taxation in recent years' adding that 'for the first time in UK law, residence is determined by reference to a comprehensive statutory code and no longer relies primarily on case law and HMRC guidance'. This means that while the test may make it easier for a person's residence status to be determined, certain ambiguities and areas of uncertainty remain.

A major benefit of the book therefore, is that it applies precise and understandable definitions of terms used in the legislation. How do you define -- legally -- the terms 'partner' and 'home', for example? According to the authors, 'there are places where quite similar terminology is used, but the definitions may be different'.

In taking this and other conundrums into account, you need to be careful when applying the three parts of the SRT (yes, there are basically three parts) to individual circumstances, If you as a practitioner need to explain the new rules to your clients, this up-to-date title is almost without a doubt, the answer to your prayers.

To help you navigate through the thickets of confusion which, some might say, bedevil the new legislation, the book begins with an introductory overview of the test, followed by an examination of the practical problems and of course, further insights into the meaning of key terms. Numerous illustrative examples show how technical principles may be applied in real circumstances

With numbered paragraphs throughout, the book is easily navigable over 14 chapters, the last one featuring HMRC guidance and practice. There is a table of cases, a table of statutes and an extensive index at the back. For tax practitioners dealing in particular, with internationally mobile clients, this book should be considered an essential purchase.

The publication date is cited as at February 2014.

Do visit the publisher's website for their latest editions and new titles.

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