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The taxman has issued information regarding taxpayers forced to return to the UK from Middle East as a result of political unrest in the area.
The document is an annex to a recent meeting of the joint expatriate forum on tax and National Insurance contributions. The Revenue promised to provide a written announcement on the position of individuals who had been affected by ‘exceptional circumstances’ of the Arab Spring and such upheaval.
An official statement reads, ‘In March of this year, HMRC issued a statement clarifying the position on UK duties for those who are not resident because they are working full time abroad. We have now been asked about the impact of such duties on those who are not resident because of full time work abroad and who have returned to the UK temporarily because of the political situation in the Middle East.
‘The following applies to those people who have returned to, or remained in, the UK following Foreign and Commonwealth Office advice and relates to those countries where HMRC has confirmed that exceptional circumstances apply. This is Tunisia, Libya, Egypt, Syria, Bahrain and Yemen.
‘2010/11 – because the issues in those countries arose towards the end of the tax year, HMRC will accept that individuals who are temporarily brought back to the UK, and who have the intention of returning to their employment abroad, will not have their residence status affected by the duties undertaken in the UK during the period of exceptional circumstances.
‘2011/12 – given the much longer period that exceptional circumstances may potentially apply for this year, duties in the UK may mean that those affected are no longer working full time abroad. During 2011/12 we would expect that the statement on full time work abroad made on 31 March 2011 would in general apply to UK duties and that HMRC will therefore:
- Normally not consider any case where UK duties were undertaken in fewer than ten days
- Look at other cases in light of their facts and circumstances.
‘HMRC said that if anyone felt that this approach would lead to unfairness or hardship for people who have had to return temporarily to the UK because of the political situation abroad, they should let them know so that they can consider the position further.’
