Do Holidays Count Towards Residence?

expat network

Do Holidays Count Towards Residence?

Someone who looks after my affairs has told me that days on holiday overseas are not classed as working, so these days are counted as being in the UK. This means I can spend much less time back in the UK if I want to remain non-resident. Is this correct?

Adam Thompson, tax manager of The Fry Group, reckons that the advice you have been given appears to be incorrect, but without full details it is hard for him to be certain.

“I am assuming that you work full time overseas,” says Thompson, “and it is on this basis that you are claiming to be non-resident under the Statutory Residence Test.

“Part of the process of calculating whether you meet the criteria of full time overseas work is to look at the amount of holiday you have taken. But it would be incorrect to say that holiday time taken overseas counts as a UK resident period. There are exceptions to this rule – notably if you are moving back to the UK.”

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.