The Inland Revenue has moved to close a loophole that allowed some wealthy investors to take up ‘temporary non-resident’ status in certain European countries, thereby avoiding paying capital gains tax in Britain.
Bilateral treaties with Belgium, Portugal and Austria have enabled British nationals living in those countries to claim non-resident status just one year after leaving the UK, thereby avoiding paying capital gains tax here.
Expats have to spend at least five years abroad before qualifying for this status under agreements with most other countries.
Closing the loophole – part of Gordon Brown’s tax avoidance measures in the latest finance bill – could boost the Revenue’s coffers by up to £100m, according to The Observer.
‘It’s a very clear signal that if you make a capital gain in this country, you’re going to have to pay tax on it,’ said John Whiting, a tax partner at PricewaterhouseCoopers, in the paper over the weekend.
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy