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Where Taxpayers and Advisers Meet

Split Year Tax Treatment Case 4

Herrero
Posts:1
Joined:Wed Jun 07, 2023 11:54 am
Split Year Tax Treatment Case 4

Postby Herrero » Wed Jun 07, 2023 1:37 pm

Does anybody know if a requirement of Case 4 is that the UK only home must be newly acquired or available to the taxpayer within the year in question, not before it?
The guidance says this:
''Starting to have a home in the UK only''.
"They must: ...
... not meet the only home test at the start of the tax year, but at some point in that tax year they do meet the only home test and continue to do so until the end of that tax year."
The point is that you are meeting the only home test if your only home is a UK home whether it was available to before the year or not, so long as you get rid of any homes abroad before you come back.
If we look at Case 8, the requirement that the home be newly available is clearly stated:
"If an individual has no home in the UK but at some point during the tax year they start to have a home in the UK, then they may meet the criteria for Case 8.
They must...have no home in the UK at the beginning of the tax year but start to have a UK home at some point during the tax year and continue to have a UK home for the rest of the tax year and all the following tax year."
I would have thought that these would be deliberate significant differences.
Does anybody have a definitive answer? And if so, where can I find it?
Thanks in advance.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Split Year Tax Treatment Case 4

Postby darthblingbling » Thu Jun 08, 2023 3:03 pm

Case 4 is that a taxpayer has a uk home only at some point during the tax year but not at the start of the year.

Case 8 essentially gets rid of the requirement that it's the only home, this is the main difference.

You can have a UK home at or before the begining of the tax year and Case 4 may apply if it later becomes your only home.

However in cases where both apply its fairly common for case 8 to take precedent, but care should be taken with respect to the meaning of home.


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