Foreign Unrest – Tax Guidance

Posted: 8th March 2011

aircraft7Workers who normally work in Egypt, Libya and Tunisia, but who have been evacuated, are to be given special consideration by HM Revenue and Customs (HMRC)
UK tax residence normally depends on how many days a person spends in the UK in a tax year.
HMRC has confirmed, in the light of the current ‘exceptional circumstances’, that
For those individuals who are evacuated from Egypt, Libya and Tunisia due to the current political situation, this situation would be treated as an exceptional circumstance and therefore covered by existing guidance in HMRC6. This will remain the case for the period that the FCO advice for the country they are leaving is in place.’
However, the ‘exceptional circumstances will only apply for the period individuals were advised by the Foreign and Commonwealth Office to leave Egypt, Libya and Tunisia and the week thereafter.’ Taxpayers wishing to claim this treatement applies to them will need evidence that any days spent in the UK were a direct result of the ‘exceptional circumstances’.
Furthermore, where an individual is present in the UK for 183 days or more in a tax year, including any days spent here because of exceptional circumstances, then they will be resident in the UK for that year. HMRC has also reminded taxpayers that they will need to.
The relevant periods and areas where an FCO advisory to leave has been, or is currently, in force are:
Egypt – For the period 29 January to 15 February 2011 those in Cairo, Alexandria and Suez were advised to leave.
Libya– Since 20 February 2011 the FCO have advised those who could to leave, this advisory remains in place.
Tunisia – For the period 15 January to 20 January 2011 the advisory was in place.
At the present time there are no restrictions on travel to Egypt or Tunisia.