An individual’s tax residence status in the UK is determined by the Statutory Residence Test (SRT), the application of which is heavily reliant on the number of days spent in the UK during the tax year (more information regarding the UK Statutory Residence Test is available).
A day is generally counted as a ‘UK day’ when an individual is present in the UK at midnight, although this is subject to certain exceptions including when individuals are only transiting through the UK.
Days may also be ignored if the individual’s presence in the UK is due to exceptional circumstances beyond their control that prevent them from leaving the UK, and they intend to leave the UK as soon as those circumstances allow. This may include local or national emergencies, civil unrest, natural disasters, the outbreak of war, or sudden life-threatening injuries or illnesses.
The maximum number of days that may be discounted is 60 days per tax year. Any days over the 60 days will count towards the individual’s UK day count regardless of whether they are due to exceptional circumstances.
HMRC’s manuals include examples of what HMRC sees as exceptional circumstances, but in practice it often takes a very narrow view of what counts as exceptional.
Examples of situations that HMRC usually doesn’t consider as exceptional include:
- Life events such as birth, marriage, divorce and death
- Choosing to come to the UK for medical treatment
- Travel problems, such as delayed or missed flights
- Delays in obtaining visas
It is also important to note that there are some specific sections of the SRT where days spent in the UK are not disregarded for exceptional events. Advice should therefore always be sought when relying on days being disregarded for exceptional circumstances.
Recent case law and the implications
In February 2025, the Court of Appeal ruled on a tax case concerning an anonymous taxpayer and exceptional circumstances under the SRT. The case, which progressed through the First-tier Tribunal (FTT), Upper Tribunal (UT), and now the Court of Appeal, highlights the involved and complex nature of this area of tax law. The decision is important because it’s binding and has the potential to change how exceptional circumstances are interpreted for those relying on this exemption.
The taxpayer is a UK citizen, domiciled in the UK and was previously resident in the UK with her husband and children. She moved to Ireland on 4 April 2015 and declared herself non-resident under the Statutory Residence Test in the 2015-16 tax year. However, the taxpayer’s twin sister, with whom she was very close, was having problems during this time, including a custody battle over her children, and sever mental health issues, including alcohol and drug dependency. As a result, the taxpayer travelled to the UK to support her sister, which resulted in her exceeding the 45-days she was able to spend in the UK without being UK tax resident under the SRT. The taxpayer claimed the `exceptional circumstances’ exemption of the SRT legislation.
One of the key issues debated in the FTT, UT and the Court of Appeal was the quality of evidence provided by the taxpayer. The case demonstrates the importance of maintaining clear and detailed records to support any claim that days in the UK should be disregarded due to exceptional circumstances.
The Court of Appeal’s decision means:
- Moral obligations can prevent a person from leaving the UK – to qualify for ‘exceptional circumstances’ departure does not need to be prevented only by defined categories such as legal obligations, physical impossibility or medical advice.
- Moral and societal obligations are part of the overall circumstances and can and should be considered when assessing whether circumstances are exceptional. While this may involve some subjectivity, the obligations must be reasonable and align with ordinary societal expectations.
- A lack of evidence can undermine a claim for exceptional circumstances.
The Court of Appeal’s decision on the meaning of exceptional circumstances means more people affected by unforeseen events may qualify for relief under the SRT than previously accepted by HMRC. However, the case also highlights the importance of taxpayers keeping clear records explaining why they were unable to leave the UK on each relevant day, as the quality and detail of evidence are crucial for a successful claim.
If you have any queries regarding the SRT rules and your personal situation, get in touch with your usual Saffery contact, or get in touch with Alexandra Britton-Davis.
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