« VAT Exemption Proposals Would Bring About A Simpler System | Main | MEPs Push For Companies To Disclose Offshore Profits »
Friday
Mar192010

Non Doms Could Be Liable To Pay Back Taxes After Court Of Appeal Decision

Have you noticed how many celebrities and powerful decision makers never domicile in the same place for too long? There are perks to being non-domiciled when it comes to taxation. This could possibly change following a recent Court of Appeal decision.

The judges in a recent Court of Appeal decision have upheld HM Revenue & Customs right to tax a British citizen who has been living in the Seychelles for over 30 years.

Under tax law used for considering the verdict, if a person spends less than 91 days in the UK per year, they are considered to be a non-domiciled / non-resident of the UK. The Court of Appeal however, ruled against the man who has abided by this law saying that he had never actually cut ties with the UK.

Where does this leave the six million UK citizens living abroad? In short - a sticky situation. If the decision is upheld, it means that HMRC could request back taxes from all of these people whom they discover have not paid enough taxes.

Typically this will be reserved to those with large sums of money/income or assets but it could also take in people who have legitimately left the country but kept hold of their family home in the UK. The decision draws a fine line but it’s not yet known where the line is. Many comments have now been made about HMRC reinterpreting their own guidance in a devious manner.

Due to the case being taken to the Supreme Court, the decision is not yet legally binding. What it does mean though, is anyone with a non-domiciled tax status should review their current position with a view to make changes where necessary. If you’re not sure about your status or would like to know more about how this decision could affect you, contact one of our advisors who can discuss your options with you.



PrintView Printer Friendly Version

EmailEmail Article to Friend

References (6)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    Response: Check This Out
    Very good page, Maintain the excellent work. Regards.
  • Response
    Fantastic Web page, Maintain the excellent job. Thank you.
  • Response
    Fantastic Web site, Stick to the fantastic work. Thank you so much.
  • Response
    Response: seo long beach
    Non Doms Could Be Liable To Pay Back Taxes After Court Of Appeal Decision - Tax, Legal & Business News from London - St Matthew Accountants London
  • Response
    Response: seo long beach
    Non Doms Could Be Liable To Pay Back Taxes After Court Of Appeal Decision - Tax, Legal & Business News from London - St Matthew Accountants London
  • Response
    Response: wealth tax
    How to discount 2 malta tax 48 if taxslayer.com reduce.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>