A Taxpayer v Revenue And Customs (Income tax - residence - appellant exceeding 45 days in the UK) [2022] UKFTT 133 (TC) (19 April 2022)

A Taxpayer v Revenue And Customs (Income tax - residence - appellant exceeding 45 days in the UK) [2022] UKFTT 133 (TC) (19 April 2022)

The Tribunal found that all six days in question fell within the exceptional circumstances exemption under paragraph 22(4) Schedule 45 FA 2013. The appellant's presence in the UK was due to her twin sister's acute mental health crisis, which constituted exceptional circumstances beyond her control, and she intended to leave as soon as the situation was stabilised. The evidence, though not corroborated by medical records for the relevant period, was sufficient on the balance of probabilities. As a result, the appellant did not exceed the 45-day limit and was not UK resident for the 2015/16 tax year.

Citation
[2022] UKFTT 133 (TC)
Parties
Appellant: A Taxpayer; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
19 April 2022
Procedural Posture
Income Tax Appeal (residence) / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal allowed
Legal Topics
Statutory Residence Test, Exceptional Circumstances Exemption, Day Counting, Income Tax Liability, Burden of Proof
Tax Law Statutory Residence Test Exceptional Circumstances Exemption Day Counting Income Tax Liability Burden of Proof

Case Brief

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Parties

A Taxpayer

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal (residence) / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether the appellant was UK resident for the 2015/16 tax year under the Statutory Residence Test (SRT)
  2. 2 Whether days spent in the UK in December 2015 and February 2016 should be disregarded under the 'exceptional circumstances' exemption in paragraph 22(4) Schedule 45 FA 2013

Ratio Decidendi

The Tribunal found that all six days in question fell within the exceptional circumstances exemption under paragraph 22(4) Schedule 45 FA 2013. The appellant's presence in the UK was due to her twin sister's acute mental health crisis, which constituted exceptional circumstances beyond her control, and she intended to leave as soon as the situation was stabilised. The evidence, though not corroborated by medical records for the relevant period, was sufficient on the balance of probabilities. As a result, the appellant did not exceed the 45-day limit and was not UK resident for the 2015/16 tax year.

Court Disposition

Appeal allowed

Orders

  • The amendments to the appellant's self-assessment tax return for 2015/16 are set aside.
  • The appellant is not UK resident for the 2015/16 tax year.