{"id":2015,"date":"2020-05-07T10:07:49","date_gmt":"2020-05-07T09:07:49","guid":{"rendered":"https:\/\/www.pacificprime.co.uk\/blog\/?p=2015"},"modified":"2020-05-07T10:07:49","modified_gmt":"2020-05-07T09:07:49","slug":"coronavirus-tax-implications-uk-expats","status":"publish","type":"post","link":"https:\/\/www.pacificprime.co.uk\/blog\/coronavirus-tax-implications-uk-expats\/","title":{"rendered":"Coronavirus tax implications for UK expats"},"content":{"rendered":"

The coronavirus crisis has turned all of our lives upside down, especially due to the nationwide lockdown and heavy travel restrictions. Some expats have been compelled to return to the UK as a result of the pandemic, while others who were in the UK when lockdown hit have found themselves stranded. An enforced extension to their stay could trigger unexpected tax implications on their worldwide income.\u00a0<\/span><\/p>\n

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\"Individual<\/a><\/p><\/div>\n<\/span><\/p>\n

Travel restriction and tax residence<\/span><\/h2>\n

Typically, spending 183 days or more in the UK during a tax year is an indicator of tax residence \u2013 and that makes someone liable to UK taxes on their worldwide income and gains. In the current circumstances with travel restrictions across much of the globe, this is quite a challenge.<\/span><\/p>\n

Many countries have issued travel bans due to the outbreak, meaning many people have been forced to remain in the UK unexpectedly. Besides international travel bans, the national coronavirus <\/span>lockdown<\/span><\/a> which started in the UK on March 23, is likely to continue until the end of May, making expatriates and UK citizens that normally work abroad worried about their current tax implications.\u00a0<\/span><\/p>\n

Expats get a coronavirus tax break<\/span><\/h2>\n

The UK’s tax authority, HMRC, has assured expatriates and non-doms that they will not face unexpected tax bills if they find themselves stuck in Britain because of the COVID-19 outbreak. They will be able to claim \u2018exceptional circumstances\u2019 exemptions because of the virus outbreak and will not have to pay tax on their global incomes. Under the ‘<\/span>exceptional circumstances<\/span><\/a>‘ rule, expats and other non-residents can remain for 60 days beyond the 183-day maximum.<\/span><\/p>\n

Exceptional circumstances<\/span><\/h3>\n

HMRC says overstaying expats will now be able to claim tax exemption in a variety of instances, including:<\/span><\/p>\n