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Introduction to ordinary residence

Ordinary residence was abolished for most income tax purposes from 6 April 2013 but ordinary residence remains for the purpose of:

1. •

   blind person’s allowance

2. •

   income from Ulster Savings Certificates exemption

3. •

   certification of diplomatic exemption which is linked to ordinary residence outside the UK

More significantly, the concept of ordinary residence remains for the purpose of determining liability to National Insurance contributions (see the Residence and ordinary residence for social security purposes guidance note).

Ordinary residence was not defined for tax purposes prior to 6 April 2013 but was a common law concept. Ordinary residence will, therefore, continue as the same common law concept for non-tax purposes.

It is outside the scope of this guidance note to run through all the changes to the legislation resulting from the abolition of ordinary residence but prior to 5 April 2013, resident and ordinarily resident individuals could not claim OWR. Additionally, to be liable to capital gains taxation, individuals had to be resident or ordinarily resident. From 6 April 2013, they only