Summary
1.Section 219 and Schedule 46 remove the concept of ‘ordinary residence’ from nearly all primary tax legislation (see Background for details of references retained). In many provisions, where the term ‘ordinarily resident’ is used on its own it is replaced by ‘resident’. And, where there is a requirement to be both resident and ordinarily resident, the requirement will be simply ‘resident’. Ordinary residence is important in relation to the taxation of individuals claiming the remittance basis. That basis of taxation will no longer be available on the grounds of being not ordinarily resident in the UK. With the abolition of ordinary residence, availability of the special relief in respect of overseas earnings due to remittance basis claimants (commonly called ‘overseas workday relief’) will depend on how long the individual has been resident in the UK. For several reliefs that depend on the individual being not ordinarily resident, transitional provisions ensure that an individual will retain relief for so long as he or she would have done so under current law.
