Non-residents with 'strong associations' may have to pay tax
Accountancy Age, 15 Jun 2009
Wealthy Brits who live offshore part of the year and enjoy tax-exempt 'non-resident' status will be in for a rude shock with new Revenue guidance on achieving non-resident status, The Times reported.
Non-resident status is normally granted to those who spend no more than 90 days a year in the UK after moving abroad. Non-residents do not pay any UK income or capital gains tax on overseas income or gains.
Now, HMRC advises that non-residents' lifestyles will be examined to see if they retain strong association with Britain in assessing whether they should be exempt from UK tax.
Revenue has not given details of factors it will consider in assessing lifestyle 'assocations' but lawyers advise retaining a UK property, carrying out work in the UK on a regular basis or maintaining strong social ties, such as membership of a club or society might be used.
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