HMRC is reviewing whether tax exemptions should apply to more than 160,000 British nationals who may return to the UK because of the escalating Iran–US conflict in the Gulf. Normally, individuals who spend more than 183 days in the UK during a tax year risk becoming UK tax residents, which could expose them to UK taxation on worldwide income.

However, current UK rules already allow individuals facing exceptional circumstances to disregard up to 60 days when calculating residence under the Statutory Residence Test. Tax advisers warn that prolonged disruption in the region could easily cause people to exceed this limit.

Therefore, HMRC is considering whether further relief should apply. According to Robert Salter of Blick Rothenberg, individuals who remain in the UK for several months could inadvertently trigger UK residence. Consequently, careful monitoring of days spent in the UK becomes essential.

Those affected may benefit from a structured review of their tax position. Holland & Co Chartered Accountants can assist by reviewing residency risks, advising on record-keeping of days spent in the UK, and conducting a detailed £200 plus VAT tax review to identify ways tax liabilities may be minimised.

• British nationals returning from Gulf conflict may risk UK tax residence.
• Staying over 183 days could trigger taxation on worldwide income.
• Up to 60 days may be ignored under exceptional circumstances rules.
• Prolonged disruption could still create unexpected tax exposure.
• Professional tax reviews can help manage residence and compliance risks.