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Residence is an important tax concept as it determines whether an individual is liable to UK income tax, capital gains tax and inheritance tax. Residence must be decided on a year-by-year basis.

The statutory residence test applies from 6 April 2013. The test applies for income tax, capital gains tax and inheritance tax, but not for national insurance purposes. All existing law, case law and guidance are superseded for tax years following the introduction of the test.

This guidance note considers the rules in place for determining residence up to and including the 2012/13 tax year. For details of the statutory residence test, see the Determining residence status (2013/14 onwards) guidance note.

This guidance note refers to ordinary residence as a key factor in understanding an individual’s liability to UK tax. This is only the case up to 5 April 2013 as this concept was removed from the statute from this date for tax purposes (subject to transitional provisions). For more on the transitional provisions, see the Ordinary residence ― transitional rules (2013/14 to 2015/16)