Paragraph 44

(1)

The circumstances of a case fall within Case 1 if they are as described in sub-paragraphs (2) to (4).

(2)

The taxpayer was resident in the UK for the previous tax year (whether or not it was a split year).

(3)

There is at least one period (consisting of one or more days) that—

(a)

begins with a day that—

(i)

falls within the relevant year, and

(ii)

is a day on which the taxpayer does more than 3 hours' work overseas,

(b)

ends with the last day of the relevant year, and

(c)

satisfies the overseas work criteria.

(4)

The taxpayer is not resident in the UK for the next tax year because the taxpayer meets the third automatic overseas test for that year (see paragraph 14).

(5)

A period “satisfies the overseas work criteria” if—

(a)

the taxpayer works sufficient hours overseas, as assessed over that period,

(b)

during that period, there are no significant breaks from overseas work,

(c)

the number of days in that period on which the taxpayer does more than 3 hours' work in the UK does not exceed the permitted limit, and

(d)

the number of days in that period falling within sub-paragraph (6) does not exceed the permitted limit.

(6)

A day falls within this sub-paragraph if—

(a)

it is a day spent by the taxpayer in the UK, but

(b)

it is not a day that is treated under paragraph 23(4) as a day spent by the taxpayer in the UK.

(7)

To work out whether the taxpayer works “sufficient hours overseas” as assessed over a given period, apply paragraph 14(3) but with the following modifications—

(a)

for “P” read “the taxpayer”,

(b)

for “year X” read “the period under consideration”,

(c)

for “365 (or 366 if year X includes 29 February)” read “the number of days in the period under consideration”, and

(d)

in paragraph 28(9)(b), as it applies for the purposes of step 3, for “30” read “the permitted limit”.

(8)

The permitted limit is—

(a)

for sub-paragraphs (5)(c) and (7)(d), the number found by reducing 30 by the appropriate number, and

(b)

for sub-paragraph (5)(d), the number found by reducing 90 by the appropriate number.

(9)

The appropriate number is the result of—

A \times \frac{B}{12}

where—

“A” is—

(a)
30, for sub-paragraphs (5)(c) and (7)(d), or
(b)
90, for sub-paragraph (5)(d), and

“B” is the number of whole months in the part of the relevant year before the day mentioned in sub-paragraph (3)(a).