TaxPersonal TaxTax plea for Britons fleeing Iraq

Tax plea for Britons fleeing Iraq

Pleas for tax concessions for Britons fleeing Iraq, following advice from the Foreign and Commonwealth Office last week, has come from the Institute for Global Mobility.

Link: Bosses called to war could lose tax perks

With the threat of war growing closer every day, the government advised all British citizens to leave the region.

But by leaving before the 5 April 2003 – for those citizens who originally left the UK after 6 April 2001 – they will not meet the one year tax test and will then face retrospective tax liability dating back to their original departure date, the IGM said.

If they would have fulfilled this one-year obligation they would have been treated by the Inland Revenue as a non-resident for tax purposes.

In a letter written to the chancellor, Brian Friedman, partner at Ernst & Young and president of the IGM asked for ‘an early announcement to give relief from unexpected and unforeseen tax bills for British expatriates who are now repatriated, pursuant to the advice given by the Foreign and Commonwealth Office in relation to the Iraq crisis’.

Friedman said concessions should be subject to two limitations: the person must have been planning on staying long enough to remain non-resident and their should be some kind of geographical restrictions.

According to the FT the Treasury is willing to consider such concessions.

Related Articles

What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

3w Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

2m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

4m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

4m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

6m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

7m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

7m Alia Shoaib, Reporter