Posted by Nick Day on 23 Mar 2020
UK Tax Residence – Impact Of Coronavirus
People are being prevented from travelling from the UK to other countries at present due to the Coronavirus epidemic. This could affect their UK tax residence status and therefore; their UK tax liabilities.
The UK’s tax residence laws are notoriously complex and these do have “exceptional circumstances” rules that can be taken into account, typically if someone is prevented from leaving the UK, which can enable continuing non-residence to be claimed even where the limits for certain day count tests are exceeded.
However, it is only up to a maximum of 60 days that an individual spends in the UK that can be ignored for these purposes, and the rules do not apply to all parts of the tax residence tests.
HMRC has recently updated its guidance in this area as follows:
“The UK is currently experiencing the effects of the coronavirus (COVID-19) pandemic. Events resulting from the impact of the virus are changing rapidly and this guidance may change at short notice as situations change.
The coronavirus (COVID-19) pandemic may impact your ability to move freely to and from the UK or, require you to remain unexpectedly in the UK.
Whether days spent in the UK can be disregarded due to exceptional circumstances will always depend on the facts and circumstances of each individual case.
However, if you:
- are quarantined or advised by a health professional or public health guidance to self-isolate in the UK as a result of the virus
- find yourself advised by official Government advice not to travel from the UK as a result of the virus
- are unable to leave the UK as a result of the closure of international borders, or
- are asked by your employer to return to the UK temporarily as a result of the virus
the circumstances are considered as exceptional.”
As the HMRC statement makes clear, much will always depend on individual facts and circumstances, but if you need advice on this topic, please get in touch with us.
If you would like any advice regarding your tax residency in the UK and implication of Coronavirus on this or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org
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