November 24th, 2006, 20:05
The Sunday Times - Money
November 19, 2006
"Brown targets exodus to the sun
A court victory for the taxman means the chancellor can squeeze more out of the 1m people who have moved abroad, writes Kathryn Cooper
Thousands of British people who have moved or retired abroad could be chased for tax going back six years following a court ruling last week.
The landmark decision changed the way Revenue & Customs calculates whether you are deemed to be resident in Britain, and therefore whether you must pay UK tax on your worldwide income and gains.
In effect, it means that people who live abroad but visit Britain regularly will be able to spend fewer days in this country before they fall foul of the taxman.
Mike Warburton of Grant Thornton, an accountant, said: тАЬThis ruling could affect ordinary middle-class families who have moved or retired abroad but who come back to Britain regularly for domestic reasons, such as visiting their grandchildren. The residence rules concern them just as much as millionaires who jet into Britain for business but spend the rest of their time in tax havens.
тАЬThey will have to be much more careful when they calculate how many days they spend in the UK, and the onus is on them to prove to the taxman that they are not resident. My advice would be to keep your plane tickets and a diary from now on.тАЭ
The RevenueтАЩs rules state that even if you settle abroad, you could still be deemed a British resident and subject to tax on your worldwide income and gains if you spend time in Britain.
You must have spent an average of no more than 90 days a year in Britain over four years to be non-resident. ......"
Full article http://www.timesonline.co.uk/article/0, ... 59575.html (http://www.timesonline.co.uk/article/0,,2097-2459575.html)
November 19, 2006
"Brown targets exodus to the sun
A court victory for the taxman means the chancellor can squeeze more out of the 1m people who have moved abroad, writes Kathryn Cooper
Thousands of British people who have moved or retired abroad could be chased for tax going back six years following a court ruling last week.
The landmark decision changed the way Revenue & Customs calculates whether you are deemed to be resident in Britain, and therefore whether you must pay UK tax on your worldwide income and gains.
In effect, it means that people who live abroad but visit Britain regularly will be able to spend fewer days in this country before they fall foul of the taxman.
Mike Warburton of Grant Thornton, an accountant, said: тАЬThis ruling could affect ordinary middle-class families who have moved or retired abroad but who come back to Britain regularly for domestic reasons, such as visiting their grandchildren. The residence rules concern them just as much as millionaires who jet into Britain for business but spend the rest of their time in tax havens.
тАЬThey will have to be much more careful when they calculate how many days they spend in the UK, and the onus is on them to prove to the taxman that they are not resident. My advice would be to keep your plane tickets and a diary from now on.тАЭ
The RevenueтАЩs rules state that even if you settle abroad, you could still be deemed a British resident and subject to tax on your worldwide income and gains if you spend time in Britain.
You must have spent an average of no more than 90 days a year in Britain over four years to be non-resident. ......"
Full article http://www.timesonline.co.uk/article/0, ... 59575.html (http://www.timesonline.co.uk/article/0,,2097-2459575.html)