Introduction Details of the Schedule Transitional and saving provision
332.Paragraph 154 provides that where for the purposes of this Schedule it is necessary to determine for the tax year 2013-14, 2014-15, 2015-16, 2016-17 or 2017-18 whether an individual was UK resident or non-UK resident for a tax year before 2013–14, this will be determined in accordance with the rules then in force unless the individual elects for the determination to be made in accordance with this Schedule. Such an election must be made by notice in writing to HMRC no later than the first anniversary of the tax year to which it applies. This paragraph also modifies the application of the fourth automatic UK test, the fifth automatic overseas test (which apply if P dies in year X) and the Case 6 split year rule in paragraph 49 in cases where no such election has been made. These modifications cater for an earlier year referred to in each provision being a year for which the third automatic overseas test did not exist.
333.Paragraph 155 provides that where for the purposes of this Schedule it is necessary to determine for the tax year 2013-14 or any subsequent year whether a tax year before 2013–14 was a split year with respect to the individual, this will be determined in accordance with the relevant Extra Statutory Concession in place for that pre-commencement year. Those concessions are ESC A11, ESC A78 and ESC D2.
334.Paragraph 156 provides a transitional rule for Case 7 (see paragraph 50). It caters for the earlier year referred to in paragraph 50(3) being the year 2012-13 for which Case 6 split year treatment did not exist.
335.Sub-paragraph (1) of paragraph 156 provides that the year in question under paragraph 50(3) must be 2013-14.
336.Sub-paragraph (2) of paragraph 156 explains how the reference in paragraph 50(3) to Case 6 is to be applied where the partner’s position for 2012-13 is being considered.
337.Sub-paragraph (3) of paragraph 156 explains how the reference in paragraph 50(7)(b) to the UK part of the relevant year is to be applied where the partner’s position for 2012-13 is being considered. The year is split into a UK part and an overseas part following the treatment given under the relevant extra-statutory concession (ESC).
338.Sub-paragraph (4) of paragraph 156 explains what is meant by ‘the relevant ESC’. For income tax purposes it would have been ESC A11. For capital gains tax purposes it would have been ESC D2.
339.Paragraph 157 sets out how the temporary non-residence rules in paragraph 110(1)(c) are to work in relation to pre-commencement years for which the concept of ‘sole UK residence’ does not apply. The rule instead uses the concepts of residence and treaty non-residence with residence being determined by the pre-commencement rules and not in accordance with the statutory residence test.
340.Paragraph 158 provides that the temporary non-resident provisions listed in sub-paragraph (3) will continue to have effect where the year of departure (as defined in paragraph 114) is a tax year before 2013-14, and that an individual’s residence for the year 2013-14 and after will be determined in accordance with this Schedule with the effect of split-years being disregarded.
341.Paragraph 159 provides that section 13 of FA 2012, which is a tax exemption in relation to the May 2013 Champions League final at Wembley, is applied using the concept of residence without regard to this Schedule.