The long-running saga of introducing a statutory test for individual tax residence in the UK now looks set to reach the statute books, but more work needs to be done before full implementation.

That's the view of the Chartered Institute of Taxation (CIOT) which says it is encouraged by the progress of the draft legislation so far, but has highlighted a number of areas that need more focus before it appears in the Finance Bill 2013.

In the wake of the consultation on the draft legislation, which was submitted this week to HMRC, John Barnett, chairman of CIOT's capital gains tax and investment income sub-committee, said: 'We very much support moving to a statutory test for tax residence. This will give businesses and individuals greater certainty in an increasingly mobile world.

'It is important that this legislation is included in next year's Finance Bill. A lot of people in the professions, in business, in HMRC and the Treasury have invested an awful lot of time and energy getting so close to the finish line. It would be unthinkable to drop the baton at this stage. However, the legislation is not quite there yet.'

Key concepts and expressions not fully explained in the draft such as 'home', 'accommodation' and 'work' still needed to be 'sharpened up' before they can become enacted and many other areas will need guidance outside the legislation, according to Barnett.

'The target has to be that the vast majority of people temporarily in or out of the UK can self-assess their residence and therefore their tax and be certain they have reached the correct answer.

'One area that still needs work is the issue of part time workers. Not everyone works a five-day week or a seven-hour day and somebody who does work part time and who is seconded either to the UK or overseas should be treated the same way as somebody who is full time.

'This legislation is definitely heading in the right direction but it is not yet "job done".'