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The SRT is a test which is used to work out the tax residence status for a tax year considering a large number of factors, one of which is the number of days spent in the UK during the tax year.
Therefore, we will now look at what is considered as a day spent in the UK.
Days spent in the UK
An individual is considered to have spent a day in the UK if they are physically present in the UK at the end of the day (midnight) which is subject to the
a) Deeming rule –
- if an individual has been a UK resident in 1 or more of the 3 previous tax years, has at least 3 relevant UK ties for the tax year and present in the UK on more than 30 days without being present in the UK at the end of the day (known as qualifying days).
- If deeming rule is met, all of the days after the first 30 qualifying days will generally count as a day spent in the UK.
b) Transit days – these days do not count as a day spent in the UK unless they engage in substantial activities unrelated to the passage through the UK.
A transit day is a day on which an individual is travelling from one country outside the UK on a through ticket, to a destination to another country outside the UK, and whilst on route:
• they arrive as a passenger
• they leave the UK the next day, as a passenger.
c) Exceptional circumstances - days spent in the UK may not count as a day spent in the UK for the purpose of the SRT.
Exceptional days due to Covid-19
Days spent in the UK may be ignored if the individual’s presence in the UK is due to exceptional circumstances beyond their control. An individual may attribute up to 60 days per tax year to exceptional circumstances. It will normally apply where the individual has no choice concerning the time they spend in the UK, or in coming back to the UK (i.e. the time spent in the UK is beyond their control).
Due to Covid-19, HMRC has published guidance where certain additional cases may be regarded as being exceptional circumstances. An individual may be able to claim exceptional circumstances in the following situations:
a) is quarantined or advised by a health professional or public health guidance to self-isolate in the UK as a result of the virus;
b) find themselves advised by official Government advice not to travel from the UK as a result of the virus;
c) is unable to leave the UK as a result of the closure of international borders; and
d) is asked by their employer to return to the UK temporarily as a result of the virus.
Whether the above circumstances can be regarded as exceptional for the purpose of the SRT will always depend on the particular facts, an individual’s circumstances and choices available to them.
HMRC has also said that the above guidance may change at short notice. As the SRT is quite a complex area, it is advisable to seek professional advice.
