A Taxpayer v The Commissioners for HMRC

A Taxpayer v The Commissioners for HMRC

The Tribunal found that while the appellant's evidence regarding her twin sister's suicidal threats was not credible and there was no corroborative evidence of suicide risk, the combination of the need to care for her twin sister and, particularly, her minor children during a crisis caused by the twin sister’s alcoholism constituted exceptional circumstances beyond the appellant’s control. The Tribunal accepted that the appellant would not have been present in the UK at the end of each relevant day but for these circumstances, and that she intended to leave as soon as possible. Therefore, the days in question were disregarded under paragraph 22(4) Schedule 45 FA 2013, and the appeal was...

Parties
Appellant: A Taxpayer; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
02 March 2022
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal allowed
Legal Topics
Statutory Residence Test, Exceptional Circumstances Exemption, Income Tax, Day Counting, Interpretation of Finance Act 2013
Tax Law Statutory Residence Test Exceptional Circumstances Exemption Income Tax Day Counting Interpretation of Finance Act 2013

Case Brief

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Parties

A Taxpayer

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether the appellant's presence in the UK for more than 45 days in the 2015/16 tax year rendered her UK resident for tax purposes under the Statutory Residence Test (SRT)
  2. 2 Whether days spent in the UK due to caring for her twin sister and minor children could be disregarded under the 'exceptional circumstances' exemption in paragraph 22(4) Schedule 45 FA 2013
  3. 3 Whether the circumstances were exceptional, beyond the appellant’s control, and prevented her from leaving the UK

Ratio Decidendi

The Tribunal found that while the appellant's evidence regarding her twin sister's suicidal threats was not credible and there was no corroborative evidence of suicide risk, the combination of the need to care for her twin sister and, particularly, her minor children during a crisis caused by the twin sister’s alcoholism constituted exceptional circumstances beyond the appellant’s control. The Tribunal accepted that the appellant would not have been present in the UK at the end of each relevant day but for these circumstances, and that she intended to leave as soon as possible. Therefore, the days in question were disregarded under paragraph 22(4) Schedule 45 FA 2013, and the appeal was...

Court Disposition

Appeal allowed

Orders

  • The days in question are to be disregarded for the purposes of the Statutory Residence Test under paragraph 22(4) Schedule 45 FA 2013.
  • The amendments to the appellant’s self-assessment tax return for 2015/16 are set aside.