The Rudge Revenue Review – Issue 32

In this Issue we consider the case of A Taxpayer v. HMRC which is the first case primarily concerned with the provisions of the Statutory Residence Test which was enacted over nine years ago in the Finance Act 2013 s.218 and Sch 45. It concerns the Exceptional Circumstances Exception to the Basis Day Count Rule. It is a robust decision in favour of the taxpayer in which HMRC’s asserted construction of the Exception, designed to severely restrict its scope, was comprehensively rejected by the Tribunal and it is extremely helpful in throwing light on a number of issues in respect of the Exception including a number which have been matters of controversy since the SRT was enacted.