SCHEDULES

SCHEDULE 46Ordinary residence

PART 2Income tax: arising basis of taxation

Savings

73

1

This paragraph applies to an individual who—

a

was resident in the United Kingdom for the tax year 2012-13, but

b

was not ordinarily resident there at the end of the tax year 2012-13.

2

The provisions listed in sub-paragraph (3) have effect, in relation to such an individual and a qualifying tax year, as if the amendments made to or with respect to those provisions by this Part of this Schedule had not been made.

3

The provisions are—

a

section 413 of ITEPA 2003 (exception for payments and benefits on termination of employment etc in certain cases involving foreign service),

b

section 414 of that Act (reduction in other cases of foreign service), and

c

Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad).

4

But, in the case of provisions within paragraph (a) or (b) of sub-paragraph (3), this paragraph applies only if service in the employment in question began before the start of the tax year 2013-14.

5

The meaning of “qualifying tax year” depends on the individual's residence status—

a

if the individual was resident in the United Kingdom for the tax year 2010-11 and the tax year 2011-12, “qualifying tax year” means the tax year 2013-14,

b

if the individual was not resident in the United Kingdom for the tax year 2010-11 but was resident in the United Kingdom for the tax year 2011-12, “qualifying tax year” means each of the tax year 2013-14 and the tax year 2014-15, and

c

if the individual was not resident in the United Kingdom for the tax year 2011-12, “qualifying tax year” means each of the tax year 2013-14, the tax year 2014-15 and the tax year 2015-16.

6

Where, by virtue of this paragraph, it is necessary to determine whether an individual is (or is not) ordinarily resident in the United Kingdom at a time on or after 6 April 2013, the question is to be determined as it would have been in the absence of this Schedule.