HMRC finally wins UK tax residency case
A Supreme Court decision yesterday will disappoint the estimated 5.6 million Brits who live abroad. The court upheld a Court of Appeal decision which supported an HMRC ruling that some expats should be considered UK residents for tax purposes.
The dispute centred around IR20 guidance and entrepreneur Robin Gaines-Cooper. He left the UK in 1976 but was judged by the Revenue to be resident between 1993 and 2003 due to the number of days he spent in the UK.
Mike Walker of KPMG said: "Today's decision reinforces the need for a clear statutory residence test." The Government is planning to introduce a statutory residence test in April 2012.
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