Returning from the Middle East to the UK: Key tax considerations

First and foremost, for anyone affected by the ongoing conflict in the Middle East, the priority must be to follow the latest travel advice and, above all, stay safe.

The current situation may mean individuals have had to unexpectedly return to the UK, or that, after a planned UK visit, they are unable to travel back to the Middle East. Remaining in the UK for longer than intended can have serious implications for UK tax residence status and, therefore, UK tax exposure.

HMRC Statutory Residence Test (SRT)

UK tax liability depends on tax residence. If an individual is UK tax resident, the default position is that they are taxed on their worldwide income and gains, regardless of where they arise.

Tax residence is determined using HMRC’s Statutory Residence Tests (SRT). These tests set strict maximum UK day limits, and exceeding these can result in UK tax residence for the year. As a result, day counting must be carefully managed each tax year to maintain non‑UK residence.

For individuals who have returned unexpectedly due to the conflict, the additional UK days may place them at risk of becoming UK tax residents.

Exceptional Circumstances – When Extra UK Days Can Be Disregarded

HMRC allows up to 60 UK days per tax year to be disregarded where ‘exceptional circumstances’ apply.

These circumstances typically include:

• Local or national emergencies
• Civil unrest
• Natural disasters
• Outbreak of war
• Sudden serious or life‑threatening illness or injury

To qualify, the situation must be beyond the individual’s control, and they must intend to leave the UK as soon as conditions permit.

However, the rules are prescriptive and can lead to outcomes that may not align with expectations.

Application to the current circumstances

HMRC guidance refers to situations where individuals return to the UK in response to Foreign Commonwealth & Development Office travel advice relating to conflict. Where the FCDO advises against all travel to a region, days spent in the UK while that advice is in place will normally qualify as exceptional circumstances (subject to the 60‑day limit).

At present, FCDO guidance for the ME region advises against “all but essential travel”, not “all travel”. This may lead HMRC to conclude that individuals could remain or return to the region based on the current advice. Consequently, claims to disregard additional days may not be accepted.

There is no HMRC-specific guidance at this time relating to UK days caused by the ME conflict, meaning uncertainty remains around the application of exceptional circumstances.

Details Matter

Given the uncertainty, it is essential for affected individuals to keep clear and contemporaneous evidence of the circumstances that led to additional days in the UK. This may include:

• Cancelled flights
• Employer instructions requiring a return to the UK
• Copies of FCDO travel advisories
• Any other supporting documentation

Although the 60‑day disregard can apply in some situations, it does not apply uniformly across all parts of the SRT. For example, for those relying on the Third Automatic Overseas Test (full‑time work overseas), the criteria include:

• Fewer than 90 UK days in the tax year
• Fewer than 30 UK workdays
• No “significant break” from overseas work (i.e., no period of >30 consecutive days without working overseas)

While the 60-day disregard may reduce UK day counts for the 90‑day rule, it cannot be applied when assessing the “significant break” condition—an unexpected pitfall that can catch many people out.

Other SRT tests may still offer routes to non‑residence, but those with multiple UK ties are more likely to be affected.

Impact on Previous Tax Years

Becoming UK tax resident for even a single year can trigger other UK tax consequences. HMRC’s Temporary Non‑Residence rules may apply, potentially bringing into charge certain income and gains realised during earlier non‑resident years.

These rules can result in historic offshore income and gains becoming taxable in the year of return.

Next Steps

If you have had to return to the UK due to the conflict in the Middle East and are concerned about the impact on your tax position, we strongly recommend seeking professional advice as soon as possible.

The AAB Private Client International Tax team is here to help. Please contact your usual AAB adviser or reach out to Lynn Gracie to discuss your circumstances further.