Coronavirus (COVID-19)—International private client
Coronavirus (COVID-19)—International private client

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Coronavirus (COVID-19)—International private client
  • Will days that an individual is forced to spend in the UK because of travel restrictions fall within the ‘exceptional circumstances’ exception under the statutory residence test?
  • What are the temporary changes to the statutory residence test in connection with COVID-19?
  • What can non-UK domiciled individuals who are resident in the UK and currently unable to leave because of travel restrictions, do to avoid acquiring a deemed UK domicile for UK tax purposes?
  • What is the impact of COVID-19 travel restrictions on UK non-resident employees and UK resident employees eligible for Overseas Workday Relief (OWR)?
  • What are the implications of the coronavirus (COVID-19) pandemic on the economic substance regimes of the Crown Dependencies and Overseas Territories?
  • Offshore trustees and COVID-19
  • Tax planning opportunities

Coronavirus (COVID-19)—International private client

This Practice Note addresses some of the key issues for international private client practice arising out of the coronavirus (COVID-19) pandemic

For guidance on the wider impact of the coronavirus across all Practice Areas, see: Coronavirus (COVID-19) toolkit.

Will days that an individual is forced to spend in the UK because of travel restrictions fall within the ‘exceptional circumstances’ exception under the statutory residence test?

The number of days spent in the UK is a fundamental element of the statutory residence test (SRT) introduced by Finance Act 2013 from 6 April 2013. It applies to:

  1. all three automatic overseas tests

  2. the first automatic UK tests

  3. determining how many ties are sufficient to determine residence (the sufficient ties test)

  4. the 90-day tie

  5. the country tie, and

  6. split year treatment

Days spent in the UK under the basic rule will be disregarded if an individual is detained in the UK through circumstances beyond their control. This may include, for example:

  1. sudden or life-threatening illness or injury, or

  2. war and civil unrest or natural disasters

HMRC guidance on the matter is set out in RDRM13210–RDRM13260 and includes case studies reflecting HMRC’s views on what constitutes exceptional circumstances. See also Practice Note: The statutory residence test—key concepts and definitions.

On 19 March 2020, HMRC published the following update at RDRM11005:

Coronavirus (COVID-19)

This new guidance needs to be read in conjunction with

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