Exceptional Circumstances for Non-UK Residents

When an individual taxpayer seeks to be deemed as non-UK resident there is SRT legislation in place to determine the number of days allowed in the UK per tax year as a non-UK resident. Those days however may be extended by a further 60 days where exceptional circumstances apply.

Previously, HMRC have indicated that such circumstances should relate to the spouse or child only when related to a family matter.

In a judgement released last month, however, it was ruled that exceptional circumstances would also be allowed for a twin sister whose overall wellbeing depended on the presence of her non-UK resident twin. This was despite the fact that these exceptional circumstances were required in the very first year of non-UK residence and which resulted in the loss of a large tax bill assessed by HMRC.

There are instances where HMRC have taken a compassionate approach in terms of granting exceptional circumstances, but in this instance, and given the amount of tax involved, it may be considered that the extent of the compassion was suitably determined at a First Tier Tribunal level.

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