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Posted Sun, 29 Dec 2024 15:14:51 GMT by uktaxquery2024
Please can you clarify if the Sovereign Base Areas (SBA) in Cyprus , are, for UK tax purposes, considered to be part of the UK. This is NOT regarding UK military service staff posted/serving in the SBA but rather a general question regarding civilians because the SBA in Cyprus actually includes Cypriot villages, roads and highways, so technically, may be part of the UK for tax (Income tax, IHT, CGT etc.) purposes ? Alternatively, are the Cyprus Sovereign Base Areas considered to be British Overseas Territories, in which case they are not part of the UK for tax purposes ? Thank you
Posted Tue, 14 Jan 2025 12:38:58 GMT by HMRC Admin 8 Response
Hi,
The Sovereign Base Areas on the island of Cyprus offer UK sovereignty totalling 98 square miles encompassing the British Forces Cyprus (BFC) bases at Akrotiri, Episkopi, Dhekelia and Ayos Nikolaos. as such anything outside the actual base is not UK territory.
Thankyou
Posted Tue, 14 Jan 2025 21:44:21 GMT by uktaxquery2024
Thanks for the response . Please can I clarify the actual technicality for non-service/non-military people (e.g. regular civilians) for UK presence day count for UK tax purposes and establishment of UK Tax residency: 1. Presence in the actual UK military and UK air bases (e.g. in the restricted areas themselves ) constitute presence in the UK for UK tax purposes and the UK presence day count applies. 2. The other, non-military areas (non-restricted areas) , within the SBA such as civilian areas, highway, roads, Cypriot villages and similar are OUTSIDE the UK for UK tax purposes and the day count does NOT apply?
Posted Fri, 31 Jan 2025 13:44:53 GMT by HMRC Admin 32 Response
Hi,
As non military, if you are not living on the actual military base you are not classed as living in the UK.
Please therefore refer to:
Tax on your UK income if you live abroad
RDR3 Statutory Residence Test
Thank you.

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