COVID-19 considered as exceptional circumstances for the Statutory OK

On 23 March 2020, the HMRC published a guidance on the SRT in the light of recent events. The UK is currently suffering the effects of the coronavirus (COVID-19). This pandemic not only limits the ability to move freely to and from the UK but also means that some people may be unintentionally stranded in the UK. For the latter, there could be significant tax consequences if the additional time spent in the UK is sufficient for them to become tax residents in the UK on the basis of the statutory residence test (“SRT”).

Where the individual’s presence in the UK is due to “exceptional circumstances” beyond their control, there is a possibility that those days spent in the UK may be ignored. Whether days spent in the United Kingdom can be disregarded due to exceptional circumstances will always depend on the facts and circumstances of each individual case. However, in the guidance published yesterday the HMRC made it clear that circumstances will be considered “exceptional” in case the individual:

• is quarantined or advised by a health professional or public health guidance to self-isolate in the UK as a result of the virus;
• find himself advised by official Government advice not to travel from the UK as a result of the virus;
• is unable to leave the UK as a result of the closure of international borders;
• is asked by his employer to return to the UK temporarily as a result of the virus.

 

Download as pdf