With nearly 50,000 Brits estimated to have upped sticks and returned to the UK due to the war in the Middle East, complex statutory residence test (SRT) rules, benefits in kind and critical day counts could trigger high tax bills
For returning UK nationals, their tax liability raises immediate concerns, with warnings to check their position on tax residence, particularly as they may have left the Middle East quickly without considering tax implications when they took the decision to leave.
When the war between US/Israel and Iran broke out on 28 February, it clearly caught the several hundred thousand strong British community in the region off guard.
HMRC said it does recognise that ‘people may need to make decisions very quickly which is why there are longstanding rules in place in place’.
The key tax consideration for returnees is the UK statutory residence test (SRT) whereby individuals and businesses are liable to UK tax depending on the number of days they spend in the country over the course of a tax year from 6 April–5 April.
