Reference no: EM133040342

Problem - Sonia, who is employed as a university lecturer, travels to the United Kingdom for 15 months sabbatical leave at a United Kingdom university. While on leave, Sonia remains in the employment of a New Zealand university, and is required to work for the university on her return to New Zealand. Sonia and her partner let their house in New Zealand out to tenants while they are in the United Kingdom. The tenancy is a periodic tenancy under the Residential Tenancies Act 1986, so is terminable with a 42-day notice period if Sonia requires it as her principal place of residence. The tenants are not associated with or friends of Sonia or her partner. Sonia's partner travels with her to the United Kingdom. Sonia remains a member of a number of local clubs and organisations in New Zealand, and keeps most of her personal property, including investments, in New Zealand (looked after and managed by family members). While in the United Kingdom, Sonia and her partner rent a house near the university where Sonia spends her sabbatical leave. For the purposes of this example it is assumed that Sonia is resident for tax purposes in the United Kingdom under the relevant United Kingdom legislation. Determine the tax residency status of Sonia. Explain.