HMRC tightens tax rules for non-residents

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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