Residence, Tax and COVID-19

Publication Date

17 Jun 2020



  1. An individual’s residence and/or domicile affects their UK Income Tax, CGT and IHT liability and the impact of COVID-19 is likely to pose problems for individuals who enjoyed foreign residence and/or domicile prior to the pandemic.


  1. Whilst domicile is a permanent, common law determined concept, residence is determined by the Statutory Residence Test ("SRT") and has hard edges, focusing on the number of days “spent” in the UK and can change from one tax year to another. COVID-19 presents a host of problems requiring close analysis of each of these concepts. These problems are particularly acute for residence, the most obvious being where an individual cannot leave the UK due to COVID-19 travel restrictions, thereby finding themselves resident, domiciled or even deemed domiciled in the UK.


  1. The law on determining whether an individual's residence or domicile is in the UK is complex. Any COVID-19 exemptions and the application thereof of them are presently unclear. In the following article, “Residence, Tax and COVID-19” we flesh out both concepts, potential COVID-19 exemptions which may apply to the hard-edged residency test, HMRC’s present position to the same and, finally, practical tips and concerns.


To read on, please click here.


Amit Karia

Practice Areas

Trusts, Wills & Estates