RFIG22420 - Statutory Residence Test (SRT):International tax clarifications due to coronavirus (COVID:19):International tax clarifications due to coronavirus (COVID 19) - Q&A
Source: gov.uk (2025-04-04)


Statutory residence test (SRT)

Update August 2022: This guidance and associated guidance at RFIG22420 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig22420) - RFIG22550 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig22550) was first published in August 2020 and remains as published for reference purposes. Please refer to guidance at gov.uk/coronavirus (https://www.gov.uk/coronavirus) for current advice for the Country you are in.

Current legislation for the SRT sets out how tax residence is determined and is explained in HMRC guidance at RFIG20010 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig20010).

HMRC recognise that the COVID-19 pandemic may impact on your ability to move freely to and from the UK or, require you to remain here unexpectedly. The SRT legislation allows for a day spent in the UK due to exceptional circumstances beyond your control, which prevents you from leaving the UK, to be disregarded. Whether days spent in the UK can be disregarded due to exceptional circumstances will always depend on the facts and circumstances of each individual case.

To support you, HMRC have published guidance at RFIG22410 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig22410) clarifying the circumstances in relation to COVID-19 which are considered exceptional for the purposes of the SRT. This guidance needs to be read in conjunction with the current published guidance on exceptional circumstances (see RFIG22210 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig22210) onwards). The maximum of 60 days in a tax year that can be disregarded due to exceptional circumstances will continue to apply.

You will need to keep records and documents in support of any claim you make to have days spent in the UK disregarded due to exceptional circumstances.

1 - Are travel restrictions due to the COVID-19 pandemic counted as exceptional circumstances for the statutory residence test?

Whether days spent in the UK can be disregarded due to exceptional circumstances will always depend on the specific facts and circumstances of your case. There is guidance at RFIG22410 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig22410).

Circumstances are considered exceptional where you find yourself advised by official government advice not to travel from the UK as a result of the virus. For example, on the 17 March 2020 the Foreign and Commonwealth Office (FCO) advised British nationals against all but essential international travel during the pandemic.

2 - What does HMRC mean by closure of international borders?

Circumstances are considered exceptional where you are unable to leave the UK as a result of the closure of international borders.

Many territories will continue to allow citizens, permanent residents or nationals to return to those territories even with wider border restrictions in place. However, if you are unable to leave the UK as a result of the closure of international borders, for exceptional circumstances to apply, you must be able to demonstrate that you have made every effort to leave once those restrictions have been lifted.

3 - What happens if I spend more than 60 days in the UK because of COVID-19, will I become UK resident for tax purposes?

The SRT legislation sets out how tax residence is determined. There are several tests to be considered, most of which contain clear limits on the number of days that you can spend in the UK. In addition, for several of these tests, a maximum of 60 days spent in the UK due to exceptional circumstances beyond your control, which prevents you from leaving the UK, may be disregarded. Guidance can be found at RFIG22230 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig22230) onwards.

4 - Does UK wide Government advice on self-isolation mean that exceptional circumstances apply?

If your stay in the UK has been extended because you are self-isolating in line with government advice, the period of self-isolation after your original planned departure date will be covered by exceptional circumstances.

5 - I've had to work remotely in the UK because I could not get back to my country, do the exceptional circumstances apply to me?

Whether days spent in the UK can be disregarded due to exceptional circumstances will always depend on the facts and circumstances of each individual case.

Any day on which you work in the UK for more than 3 hours will count as a UK workday, even if they are days which have been disregarded for other tests due to exceptional circumstances. Guidance is available at RFIG20760 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig20760).

6 - I am non-UK tax resident, but my parents, spouse and children live in the UK, Will I be made tax resident in the UK if I come to the UK during the COVID-19 pandemic?

If you are coming to the UK you should refer to the current SRT rules (http://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt) which sets out how tax residence is determined. In addition, there is further guidance at RFIG20000 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig20000).

Exceptional circumstances will normally apply where you have no choice concerning the time you spend in the UK, or in coming to the UK. Your presence in the UK must be beyond your control and you must be prevented from leaving the UK.

7 - I came to the UK to support my vulnerable family members who needed assistance during the COVID-19 pandemic. Would this be considered an exceptional circumstance?

Certain vulnerable people have been asked to 'shield' or 'self-isolate' due to the COVID-19 pandemic. Whether or not the impact of those circumstances is exceptional to you, will depend on the facts and circumstances of your case. You will need to be able to demonstrate why it was necessary for you to come and remain in the UK to provide support for a vulnerable member of your family.

Documentation to support your case may include, but is not limited to, a letter, email or text message from a medical professional telling the family member to shield or self-isolate, and evidence from the local authority that help or support was not available to them, or confirmation that they were relying on you to provide the support.

8 - For the purposes of the family tie, are children under 18 years old still considered in full-time education although schools were currently shut due to the COVID-19 pandemic?

For the purpose of the family tie a child who is in full-time education in the UK and as a result is resident here will not be treated as resident if they spend less than 21 days in the UK outside of term time.

As a result of the COVID-19 pandemic many schools closed, other than for vulnerable children or the children of key workers. However, there was a clear expectation that children's full-time education would continue albeit in a different environment. Therefore, they are considered to still be in full time education for this period.

If due to travel restrictions a child in full time education spends 21 days or more in the UK outside of term-time they cannot be treated as non-UK resident (assuming they are otherwise UK resident) for the purposes of the "family tie". This is because these days are not covered by the exceptional circumstances exception.

9 - I am normally non-resident for UK tax purposes. My company have asked me to come to the UK to work because of COVID-19. How will this impact my residence status?

Returning to the UK may result in a significant break in your overseas work (see RFIG20760 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig20760)) and you may no longer meet the 3rd automatic overseas test (working full-time abroad). Any day on which you work in the UK for more than 3 hours will count as a UK workday, even if they are days which have been disregarded for other tests due to exceptional circumstances.

It is necessary to consider the facts and circumstances of your individual case and look at the whole year when determining your residence status. A change in anticipated residence in 2020-2021 may affect the prior year if it was a split year, see RFIG22230 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig22230).

10 - How will exceptional circumstances apply to individuals working abroad on a split tax year basis, where their employer has told them to come back to the UK?

Split year treatment is only available if you are resident in the UK for a tax year. You will need to consider your circumstances across the entire tax year before you consider if you qualify for split year treatment and from what date the year will be split.

11 - As a trustee of a non-UK resident trust, if I am unable to leave the UK due to COVID-19 travel restrictions, how will my presence in the UK affect the trust?

There are no special rules for determining the residence status of a trustee, the SRT rules apply. Days spent in the UK as a result of exceptional circumstances will be considered in determining whether you have become UK resident. If you become UK resident, this could affect the residence of the trustees as a body.

Company residence

12 - Have HMRC considered the situation where people are working in a country they are not usually in and their company changing residence as a result of place of central management and control?

HMRC does not believe such travel restrictions will necessarily result in a change of a company's tax residence, or cause there to be a UK permanent establishment and has published guidance in INTM120185 (https://www.gov.uk/hmrc-internal-manuals/international-manual/intm120185) and INTM261010 (https://www.gov.uk/hmrc-internal-manuals/international-manual/intm261010). HMRC believes the guidance is consistent with the Analysis of Tax Treaties and the Impact of the COVID-19 pandemic guidance published by the OECD Secretariat on 3 April 2020.

Domicile and deemed domicile

If you aren't domiciled in the UK under common law, you are treated as domiciled in the UK for all tax purposes if either Condition A or Condition B is met.

Condition A - to meet this condition you must:
- be born in the UK
- have the UK as your domicile of origin
- be resident in the UK for 2017-2018, or later years
Condition B

Condition B is met when you've been UK resident for at least 15 of the 20 tax years immediately before the relevant tax year.

If you are deemed domiciled in the UK, you will no longer be able to claim the remittance basis of taxation and will be assessed on your worldwide income and gains on the arising basis. Guidance on domicile and deemed domicile is available at RFIG20010 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig20010) onwards.

13 - If I was planning to leave the UK during 2020-2021 so that I do not become deemed domiciled in 2021-2022, but I am unable to do so because of the restrictions currently in place, how am I affected?

There have been no changes to the deemed domiciled rules. Deemed domicile does not turn on the residence of any one tax year, but the pattern of residence over a 20 year period. You will not become deemed domiciled in the UK in 2021-2022, unless prior to 2020-2021 you were tax resident for an additional 14 of the immediately previous 19 years.

Remittance basis

14 - Is there any relief for non-UK domiciled UK tax residents who need to bring foreign income or gains (FIG) taxed on the remittance basis to the UK to support their business?

FIG brought to the UK to support an eligible target company during the COVID-19 restrictions can benefit from Business Investment Relief (see RDRM34300 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm34300) onwards). FIG brought to the UK to support your self-employment business is a chargeable remittance.

15 - I usually carry out the duties of my employment both in the UK and abroad. I am non-UK domiciled and the duties I carry out abroad are taxed on the remittance basis. If I am unable to travel due to travel restrictions, how will I be taxed if I carry out my overseas duties in the UK?

There have been no changes to the current legislation. The earnings for the duties you perform in the UK will be treated as earnings in respect of UK duties. These earnings will not be eligible for the remittance basis and they will be taxed on the arising basis.

Double Taxation

16 - I live abroad with my family and I am treaty resident in an overseas country. Will there be any impact on me as I have been stranded in the UK due to travel restrictions?

Treaty residence is determined using a series of tie breaker tests (for example, permanent home, centre of vital interests, habitual abode and nationality). Although you may become resident in the UK under the statutory residence test, your residence under a treaty will not change due to your temporary dislocation.

17 - How will the employment article within a treaty be applied while I am working in the UK but for an overseas employer?

There is no change to the employment article and how it applies will depend on your circumstances.