I'm trying to understand the meaning of "treaty non-resident" and how to apply a DTA in the context of CGT for temporary non-residents.
CG26540 says: "For the purpose of the 4 out of 7 year test, where a year falling within the 7 year period is 2012-13 or an earlier year then the test is modified slightly. A year would be regarded as one of the 4 years where: 1) the individual was resident in the UK for the year and 2) there was no time in that year when the individual was treaty non-resident".
I came to the UK in September 2009. I lived in Austria before that and Austria's tax year is the calendar year. I lived in Austria for more than 183 days in 2009, had a permanent home there when I lived there and worked there. So it's pretty clear that I was an Austrian resident in 2009.
When I moved to the UK in September, I became a resident (spent more than 90 days in the UK in the tax year, had a home, etc). I assume split year treatment would apply for 2009 but I would still be considered a resident for the whole 2009-10 tax year.
So from January 1 to April 5 I was a sole resident of Austria. Given that the UK tax year starts on April 6, I assume I became a UK resident on that date, even though I moved in September.
Does that mean I would have been treaty non-resident between April 6 and September, meaning that the 2009-10 tax year would not count as one of the 4 out of 7 year test?
Or does the DTA have to be applied to a whole tax year? And which tax year (Austria or UK)? Assuming Austria, can we assume the DTA would result in favour of Austria since I spent the majority of 2009 in Austria, or do we have to look at factors like permanent home, etc and if so, for which period (starting from September? from April 6?).
Thanks for your help!
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