Ongoing geopolitical conflicts, public health emergencies and international travel disruption can create unexpected UK tax residence issues for internationally mobile individuals.
Non-UK residents may find themselves spending more time in the UK than anticipated due to circumstances outside their control, raising concerns about whether they could inadvertently become UK tax resident.
To explore this, we look at how residence is determined within the UK and the exceptional circumstances relief that is available for these times of crisis.
Residency in the UK is determined under the Statutory Residence Test (SRT) and click here for HMRC internal manual . In practice, when applying this test, you consider both the time spent in the UK and the extent of an individual’s continuing connections to it (sufficient ties test) in a tax year. The results of this test then determine if an individual is UK or non-UK resident for that tax year.
Exceptional circumstances can sometimes affect how days spent in the UK are counted, particularly during periods of crisis such as war, pandemics, natural disasters or sudden travel restrictions.
These rules became particularly relevant during the COVID-19 pandemic, but they can also apply in other emergencies where individuals are unexpectedly prevented from leaving the UK or are required to return to the UK due to the country they reside in being unsafe.
Understanding how HMRC applies these provisions is important for internationally mobile individuals, business owners, expatriates and non-UK residents who need to monitor their UK day count carefully to ensure they do not become UK resident.
Under the SRT, some days spent in the UK can be ignored if they are due to “exceptional circumstances”. This includes certain situations involving war, civil unrest, or serious illness. HMRC says the rules depend heavily on the facts of each case.
UK tax residence is determined under the SRT, and the test considers:
The SRT includes automatic overseas tests, automatic UK tests and sufficient ties tests, with residence determined based on the individual’s overall circumstances for the relevant tax year.
For many internationally mobile individuals, day counting is critical. Exceeding certain thresholds can result in UK tax residence arising unexpectedly.
Exceptional circumstances provisions may therefore provide limited relief where an individual is forced to remain in the UK due to unforeseen events.
Under the SRT, certain days spent in the UK may be disregarded where an individual is unable to leave the UK because of circumstances beyond their control.
The maximum number of days that may be disregarded under SRT is 60 days per tax year. Any days over this limit will count towards the UK day count.
HMRC considers exceptional circumstances to include situations where:
The legislation applies narrowly and generally only where the circumstances are:
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HMRC also emphasises that the application of the rules depends heavily on the facts of each case and will not accept claims relating to ordinary travel disruption, elective or routine medical treatment, foreseeable events, personal preferences to remain in the UK or situations where the individual could have reasonably left the UK. Click here for manual rfig22270
HMRC generally expects individuals to leave the UK as soon as circumstances permit.
War, military conflict or political unrest can create sudden travel disruption that prevents individuals from leaving the UK safely or legally and returning to their country of residence.
For example, recent airspace closures and travel restrictions affecting parts of the Middle East temporarily prevented some individuals from returning to their country of residence. As such, they had to stay in the UK until the restrictions were lifted and it was safe to travel back home again.
In such circumstances, HMRC may accept that additional days spent in the UK arose due to exceptional circumstances beyond the individual’s control.
HMRC guidance specifically refers to situations as above where the Foreign, Commonwealth & Development Office (FCDO) advice recommends against travel.
Following the outbreak of the conflict involving Ukraine, HMRC confirmed that individuals returning to the UK from affected territories such as Ukraine, Russia and Belarus could potentially qualify for exceptional circumstances treatment, subject to the normal statutory conditions and the 60-day limit.
The COVID-19 pandemic highlighted how exceptional circumstances rules can apply during global health emergencies.
During the COVID-19 pandemic, the following led to many individuals having to remain in the UK longer than expected:
HMRC issued specific guidance during this period confirming that COVID-related restrictions could potentially qualify as exceptional circumstances in some situations and accepted that some individuals were unable to leave the UK because of the above circumstances.
However, HMRC also made clear that not every pandemic-related delay would qualify automatically. Each case depends on its particular facts and evidence.
Also, HMRC stressed that simply choosing to remain in the UK during the pandemic would not automatically qualify as an exceptional circumstance.
Events such as earthquakes, volcanic eruptions, hurricanes or widespread civil disorder may also create circumstances beyond an individual’s control.
Where travel is disrupted unexpectedly and departure from the UK becomes impractical or unsafe, HMRC may consider whether the exceptional circumstances provisions apply.
HMRC states there can be “limited situations” where days spent in the UK may be disregarded because of a sudden illness or a life-threatening injury affecting:
The circumstances must generally be unexpected or unforeseeable and genuinely outside of the individual’s control that prevents them from leaving the UK.
Routine medical treatment, elective treatment, ordinary travel disruption and foreseeable events are examples of circumstances that HMRC will not accept as qualifying as exceptional circumstances in this case.
HMRC states that the person must intend to leave the UK as soon as the circumstances allow.
The exceptional circumstances provisions are limited.
In most cases, a maximum of 60 days can be disregarded for residence purposes, even where the disruption lasts longer.
This means individuals who spend significant additional time in the UK during a prolonged crisis may still become UK tax resident despite the relief provisions.
Careful analysis of UK ties and overall residence status remains essential.
Importantly, exceptional circumstances relief does not apply universally across all parts of the SRT. Whether days can be disregarded depends on the particular residence test being considered.
Individuals seeking to rely on exceptional circumstances should maintain detailed records to support their position and any claim they make.
Relevant evidence may include flight cancellations and correspondence with airlines or embassies, government travel announcements, medical documentation, border closure notices and quarantine requirements.
HMRC may request evidence demonstrating that the individual intended to leave the UK and was genuinely prevented from doing so. Simply choosing to remain in the UK during a crisis may not be sufficient.
As a result, residence cases involving exceptional circumstances often require careful factual analysis, particularly for individuals with complex international arrangements or multiple UK connections.
Good record keeping is therefore extremely important.
Exceptional circumstances provisions within the UK SRT can provide valuable relief where individuals are unexpectedly prevented from leaving the UK during periods of crisis. However, the rules are narrowly applied, subject to strict evidential requirements and limited to a maximum of 60 disregarded days per tax year.
Careful monitoring of UK day counts, detailed record keeping and professional advice are often essential to managing UK residence risks effectively.
What counts as exceptional circumstances for UK residence purposes?
Exceptional circumstances generally involve events beyond an individual’s control that prevent them from leaving the UK, such as war, pandemics, natural disasters or government travel restrictions.
How many days can be ignored under the exceptional circumstances’ rules?
Typically, up to 60 days may be disregarded under the Statutory Residence Test provisions.
Did COVID-19 qualify as an exceptional circumstance?
In some situations, yes. HMRC issued guidance confirming that certain COVID-related travel restrictions and quarantine measures could qualify.
Does HMRC automatically accept exceptional circumstances claims?
No. HMRC considers each case based on its facts and supporting evidence.
Can I become UK tax resident despite the exceptional circumstances’ relief?
Yes. Even where some days are disregarded, an individual may still become UK tax resident depending on their overall circumstances and UK ties.
What evidence should I keep?
You should retain travel records, cancellation notices, government guidance, medical evidence and any documentation showing why departure from the UK was not possible.
If you have any queries about anything covered in this article, please do contact us at ETC Tax. Our team would be happy to help you understand how the UK residence rules may apply to your circumstances.
Further Reading on a recent case relating to exceptional circumstances click here
