The recent judgment in Taxpayer v HMRC [2025] EWCA Civ 106, a case about an unnamed taxpayer, is the latest instalment in long-running litigation which has been of particular interest to private client advisors and those working with internationally mobile individuals.

When first introduced more than a decade ago, the ‘statutory residence test’ in Sch 45 FA 2013 brought much-needed clarity in establishing whether an individual was tax resident in any given year in the UK. Most cases turn simply on the number of days a person spent in the country.

Rigid rules provide clarity but can lead to unfair outcomes in practice. In recognition of this, paragraph 22(4) allows days to be disregarded in ‘exceptional circumstances’.

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