When calculating an individual’s liability to tax in the UK, their residence status plays an important role. Since 2013 this is determined by the Statutory Residence Test (SRT). 

When reviewing the SRT, it is imperative for the individual to have kept clear records of their number of days in the UK. Under the SRT HMRC define a day as one in which the individual was in the UK at the end of that day, being midnight. 

This matter becomes of greater importance where exceptional circumstances prevent the individual from leaving the UK. 

From the recent HMRC case “A Taxpayer v HMRC [2022] TC08464”, the First Tier Tribunal held that a taxpayer’s need to be in the UK to care for her alcoholic sister’s minor children was in fact an exceptional circumstance for the purposes of the SRT 

Exceptional Circumstances 

Up to 60 days per tax year can be disregarded when counting days for (most) purposes of the SRT if the taxpayer can show that each of the following conditions are satisfied:

• The circumstances were exceptional;
• The circumstances were beyond the individual’s control;
• the circumstances prevented the individual from leaving the UK;
• the individual would not have been in the UK at the end of the day, but for the circumstances; and
• the taxpayer intended to leave the UK as soon as circumstances permitted. 

1. The taxpayer’s ability to foresee a need to care for her sister upon her move to Ireland precluded a finding of exceptional circumstances;
2. The exceptional circumstances exemption does not apply to those who came to and remained in the UK due to a moral obligation or an obligation of conscience to care for another;
3. The exceptional circumstances exemption could only apply to those already in the UK, and whilst in the UK, the exceptional circumstances prevented them from leaving. 

Key Points 

• Exceptional circumstances can apply even where the circumstances are foreseeable.
• A wider view should be taken of what it means to be prevented from leaving the UK.
• The exemption applies to individuals who come to the UK due to the exceptional circumstances, not only to those who are already in the UK.