HMRC Manual RDRM11570 states –
“The individual will have a 90-day tie for the tax year if they have spent more than 90 days in the UK in either or both of the previous 2 tax years immediately before the year under consideration.”
I was confused with the words “or both”. In my opinion purpose would have been solved without these two words. I looked at the legislation, see below.
Legislation FA2013 Sch 45 Para 37 states –
“P has a 90-day tie for year X if P has spent more than 90 days in the UK in—
(a) the tax year preceding year X,
(b) the tax year preceding that tax year, or
(c) each of those tax years separately.”
This increased my confusion, as what is the use of point c.
Then, I had the light bulb moment. Guidance and legislation are trying to be too perfect.
I have tried to illustrate this with a few examples below. Say we are doing SRT for taxpayer A for the year ended April 2023.
Example 1: If A was in the UK for 90 days in tax year ending April 2022.
This, satisfies point a of the legislation.
Example 2: If A was in the UK for 90 days in tax year ending April 2021.
This, satisfies point b of the legislation.
Example 3: Suppose we did not have point c of the legislation – “each of those tax years separately”. If A was in the UK for more than 90 days in both tax year ending April 2022 and April 2021, he would have satisfied both point a and point b but these are OR conditions. In our case as both are satisfied it can be construed that he would not have 90-day tie. To avoid this situation, point c was inserted.
For all practical purposes, A will satisfy the 90-day tie rule if he has been in the UK in ANY tax year ending April 2022 or April 2021.
Roy Accountants 