{"id":5524,"date":"2020-04-20T16:58:40","date_gmt":"2020-04-20T08:58:40","guid":{"rendered":"https:\/\/www.infinitysolutions.com\/?p=5524"},"modified":"2020-04-20T17:05:12","modified_gmt":"2020-04-20T09:05:12","slug":"coronavirus-and-the-tax-implications-for-uk-expats","status":"publish","type":"post","link":"https:\/\/www.infinitysolutions.com\/blog\/expatriate-financial-planning\/coronavirus-and-the-tax-implications-for-uk-expats\/","title":{"rendered":"Coronavirus And The Tax Implications For UK Expats"},"content":{"rendered":"

The coronavirus crisis has turned all of our lives upside down. \u00a0Some expats have been compelled to return to the UK as a result of the pandemic while others who were in the UK when lockdown hit have found themselves unable to leave. An enforced extension to their stay could trigger an unexpected \u2013 and unwelcome \u2013 tax liability.<\/p>\n

How are HMRC dealing with these specific cases?<\/p>\n

Non-residents stuck in the UK<\/strong><\/p>\n

Non-resident status is dependent on not breaching a maximum number of days that expats are permitted to spend in the UK. This could be anything from 16 to 183 days, depending on certain factors which apply according to the statutory residence test<\/a>. For example:<\/p>\n

Non-residents who were resident in the UK for one or more of the three tax years before the current tax year, who spend more than 16 days<\/strong> in the UK in the tax year could possibly be classed as resident for tax purposes.<\/p>\n

Any non-residents who spend more than 183 days<\/strong> in the tax year in the UK ordinarily would be classed as resident for tax purposes.<\/p>\n

It\u2019s easy to see how an enforced, extended stay in the UK could trigger residency. In normal circumstances, if you are classed as a UK resident you would have to pay tax not just on UK income and capital gains but on all your assets worldwide.<\/p>\n

It\u2019s clear that this is a huge concern for non-residents who have become stuck in the UK on what was supposed to be a short trip. Under lockdown, they find themselves forced to exceed the maximum number of days they are allowed to spend in the UK to retain non-resident status as a result of coronavirus travel restrictions.<\/p>\n

Fortunately there is good news for these individuals. Even in non-pandemic times, according to HMRC legislation, non-residents can be accorded an additional 60 days within a tax year for exceptional circumstances. Usually this would include births, deaths or unexpected illness or injury.<\/p>\n

HMRC have in effect classed the Covid-19 crisis as exceptional circumstances<\/a> and told expats and non-UK domiciled individuals who find themselves having to stay in the UK over their permitted number of days that they can claim these exemptions. This means that they will not have to pay tax on their global incomes.<\/p>\n

The government website clarifies as follows the circumstances which are considered as exceptional:<\/p>\n