Legislation – Finance Act 2025

“6A“Long-term UK resident”: individuals

(1)

For the purposes of this Act, an individual is a “long-term UK resident” at all times in a tax year if they were UK resident for at least 10 of the previous 20 tax years.

(2)

But an individual is not a long-term UK resident at any time in a tax year (“the current tax year”) if they were non-UK resident—

(a)

for any 10 consecutive tax years during the 19 tax years before the current tax year, or

(b)

for at least the required number of consecutive tax years ending with the tax year before the current tax year.

(3)

To determine “the required number” for the purposes of subsection (2)(b), take the 20 tax years ending with the last tax year for which the individual was UK resident and find the number of those tax years for which the individual was UK resident (“the number of resident years”).

The required number is the number in the second column of the following table corresponding to the number of resident years.

Number of resident years	Required number
13 or less	3
14	4
15	5
16	6
17	7
18	8
19	9
20	10

(4)

In this section, “UK resident” means resident in the United Kingdom and “non-UK resident” means not resident in the United Kingdom.

(5)

For the purposes of this section, a question as to whether the individual was UK resident for the tax year 2012-13 or an earlier tax year is to be determined as it would have been determined for income tax purposes for that tax year (and as to later tax years see Schedule 45 to the Finance Act 2013 (statutory residence test)).

(6)

See also—

(a)

section 6B (which modifies this section in its application to young persons);

(b)

sections 267ZC to 267ZE (under which a person may be treated as a long-term UK resident as the result of an election).

6B“Long-term UK resident”: young persons

(1)

In the application of section 6A(1) for the purpose of determining whether a young person is a long-term UK resident at any time in a tax year (“the current tax year”), that subsection has effect as if—

(a)

for “20” there were substituted the number of whole tax years for which the person was alive before the current tax year, and

(b)

for “10” there were substituted half the number mentioned in paragraph (a) (rounded up, if not a whole number, to the next whole number).

(2)

In subsection (1), “young person” means an individual who was under the age of 20 immediately before the current tax year.

(3)

For the purposes of this Act, an individual is not a long-term UK resident at any time in a tax year if they were under the age of 1 (or were not yet born) immediately before the tax year.

6C“Long-term UK resident”: bodies corporate

For the purposes of this Act, a body corporate is a “long-term UK resident” at all times in a tax year if the body—

(a)

is incorporated in the United Kingdom, or

(b)

was (if in existence before the beginning of the tax year) within the charge to corporation tax on income at any time during the previous tax year by virtue of section 5(1) of the Corporation Tax Act 2009 (UK resident companies).”

“48ZAExcluded property: property situated outside the UK etc

(1)

If property comprised in a settlement—

(a)

is situated outside the United Kingdom, or

(b)

is a holding in an authorised unit trust or a share in an open-ended investment company,

this section applies to the property and section 6(1) and (1A) (general excluded property rule) does not.

(2)

If the settlor is alive, the property is excluded property at any time when the settlor is not a long-term UK resident.

(3)

If the settlor died on or after 6 April 2025, the property is excluded property if the settlor was not a long-term UK resident immediately before they died.

(4)

If the settlor died before 6 April 2025, the property is excluded property if the settlor was not domiciled in the United Kingdom when the property became comprised in the settlement.

(5)

Subsections (2) and (3) do not apply at any time to property to which section 49(1) (certain interests in possession) applies if, at that time, the person beneficially entitled to the interest is a long-term UK resident.

(6)

Subsections (2) to (4) do not apply to property if—

(a)

an individual has been beneficially entitled to an interest in possession in the property—

(i)

at any time on or after 6 April 2025 while a long-term UK resident, or

(ii)

at any time before that date while domiciled in the United Kingdom, and

(b)

the entitlement arose directly or indirectly as a result of a disposition made on or after 5 December 2005 for a consideration in money or money’s worth.

(7)

For the purposes of subsection (6)—

(a)

it is immaterial whether the consideration was given by the individual or by anyone else, and

(b)

the cases in which an entitlement arose indirectly as a result of a disposition include any case where the entitlement arose under a will or the law relating to intestacy.

(8)

Where the conditions in paragraphs (a) to (d) of section 74A(1) (arrangements involving acquisition of interest in settled property etc) are satisfied, none of subsections (2) to (4) applies at the time when the conditions are first satisfied or at any later time to make the relevant settled property (within the meaning of section 74A) excluded property.

(9)

If—

(a)

an amount is payable in respect of property (“the existing property”) comprised in a settlement, and

(b)

the amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement,

subsection (4) has effect in the case of the amount as if the reference to the time when it became comprised in the settlement were to the time when the existing property became comprised in the settlement.

(10)

Subsections (2) to (4) are subject to Schedule A1 (overseas property with value attributable to UK residential property).

(11)

The reference in subsection (1) to property comprised in a settlement does not include a reversionary interest in the property (and accordingly this section does not apply to such an interest and section 6(1) does).”