The First-tier Tribunal’s decision in Parker [2026] TC 09868 provides a useful and practical reminder of how the UK’s Statutory Residence Test (SRT) can apply where international travel is disrupted.
The case considered both the “transit” and “exceptional circumstances” provisions within the SRT and will be of particular interest to internationally mobile individuals whose travel plans are affected by events outside their control.
The taxpayer, MP, worked in Iraq as a Chartered Engineer while his family home was in London. During the 2019–20 tax year, MP was present in the UK at the end of the day on 100 days.
Under the third automatic overseas test, an individual can remain non-UK resident if they spend fewer than 91 days in the UK in the relevant tax year, provided other conditions are met.
MP argued that 11 of his UK days should be disregarded under the statutory exceptions, reducing his UK day count to 89 and therefore making him non-UK resident for the tax year. HMRC disputed four of those days. If HMRC’s position had been correct, MP would instead have been UK resident under the sufficient ties test.
The Tribunal ultimately found in favour of the taxpayer.
The first issue concerned three days in February 2020 when MP passed through Heathrow between international journeys.
The relevant dates were:
Under the SRT transit exemption, a day can be disregarded if:
HMRC argued that MP’s journeys ended when he landed at Heathrow because each leg had been booked separately rather than under a single through-ticket. On that basis, they contended he was no longer “in transit”.
The Tribunal rejected this argument, finding that the legislation did not support such a distinction and that whether flights were booked on a single ticket or separately was largely arbitrary.
HMRC also argued that meeting MP’s wife and stepdaughter and staying overnight near Heathrow were activities unrelated to transit.
Again, the Tribunal disagreed. It concluded that accommodation, meals, airport transfers and meeting family members travelling onward together were all functionally connected to the international journeys.
The Tribunal therefore accepted that the transit exemption applied to 8 and 17 February and would also apply to 28 February if the following day qualified under the exceptional circumstances provisions.
The second issue is related to 29 February 2020.
MP had boarded a flight from Heathrow to Dublin, but the flight was cancelled due to airport disruption caused by Storm Jorge. He disembarked, his luggage remained checked in with the airline, and he accepted overnight accommodation and food near Heathrow and rebooking arrangements provided by the airline for a flight the following day.
HMRC argued that adverse weather did not constitute “exceptional circumstances” and that MP had not done enough to leave the UK “as soon as circumstances permitted”, because he had not attempted to arrange alternative travel independently.
The Tribunal adopted a more practical approach.
It accepted that while poor weather alone may not always be exceptional, airport closures and significant travel disruption caused by severe weather could amount to exceptional circumstances.
Importantly, the Tribunal also rejected the suggestion that taxpayers must pursue every possible travel alternative in order to satisfy the statutory test. It stated:
“Ordinary societal expectations do not require a passenger, in the midst of significant disruption, to disregard airline arrangements, abandon checked in luggage, or attempt speculative alternative travel in order to demonstrate an intention to leave the UK as soon as those circumstances permit.”
The Tribunal therefore concluded that 29 February qualified as an exceptional circumstances day. As a result, the transit exemption also applied to 28 February.
This case is a useful illustration of how the SRT should be applied realistically and commercially.
The decision confirms that:
For internationally mobile individuals, particularly those with family or accommodation ties in the UK, careful tracking of UK days remains essential. However, Parker demonstrates that the courts may take a sensible approach where travel disruption genuinely falls outside the taxpayer’s control.
It remains to be seen whether HMRC will appeal the decision.
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 - Exceptional Circumstances and UK Tax Residence Rules During Times of Crisis
