HMRC has issued additional guidance confirming that the coronavirus pandemic creates exceptional circumstances for determining residence status.
The statutory residence test takes into account the number of days spent in the UK to determine if you are deemed as UK resident. If an individual spends more than 183 days in the UK they will be automatically treated as UK resident. For periods of time less than 183 days, further tests apply which take into account both an individual’s connections with the UK and time spent here.
In the updated guidance, HMRC has confirmed that certain days spent in the UK as a result of the coronavirus pandemic can be disregarded for the purposes of the test including where:
• 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;
• official Government advice is not to travel from the UK as a result of the virus;
• you are unable to leave the UK as a result of the closure of international borders; or
• you are asked by your employer to return to the UK temporarily as a result of the virus.
HMRC does stress that exceptional circumstances are applied on a case by case basis, therefore, if you have any questions or concerns as to how this may impact you, please get in touch.
Further, Rishi Sunak has confirmed that the statutory residence test will be updated such that any periods spent in the UK by individuals between 1 March 2020 and 1 June 2020 will not be taken into account where they are working on COVID-19 related activities. Rishi states, however, that the rules will be drafted to prevent abuse and will be targeted specifically to those individuals with the skillsets required to support the current crisis. Legislation will be included in the upcoming Finance Bill and, as with other measures, it is expected that the timescale will be extended if required.