Exceptional circumstances and A Taxpayer

Last year in ‘It’s exceptional!’ (Taxation 16 June 2022 page 20) Kevin Winters reported on the first pronouncement of the tax tribunals on the meaning of ‘exceptional circumstances’ under the statutory residence test (SRT). Perhaps unsurprisingly owing to the novelty of the question put before the First-tier Tribunal (FTT) and the importance of clarity moving forward the matter has been reviewed and decided upon by the Upper Tribunal (UT).

Background

The circumstances of the case may be summarised are as follows: the taxpayer moved from the UK to Ireland on 4 April 2015. In the course of the following tax year 2015-16 her husband transferred shares resulting in her receipt of dividends worth around £8m. The taxpayer completed her tax return for the year claiming non-UK residence. HMRC reviewed the return opened an enquiry and determined that the taxpayer had exceeded the number...