HMRC’s challenge on exceptional circumstances claims appears to be predicated on taxpayers making conscious decisions to remain in the UK during the pandemic, rather than not having the option to leave. HMRC is applying the benefit of hindsight in analysing taxpayers’ intentions and actions and overlooking the uncertainty and confusion that prevailed during the pandemic.

HMRC is focusing its enquiries on taxpayers that have been non-resident in the years prior to the pandemic. During the tax years 2019/20 and 2020/21, individuals may have spent more days than usual in the UK due to travel restrictions imposed by governments.