HM Revenue &
Customs has confirmed it has not changed its rules relating to the
time UK non-residents can spend on the island following the controversial
Gaines-Cooper tax case, despite concerns among tax advisers that the so called
’91-day test’ had been overridden and so-called ‘Monaco Millionaires’ would face
a tax clampdown.
As revealed in Accountancy Age
last month, HMRC has stated that former UK residents who spend less than 91
days onshore during a tax year do not come under the UK’s tax net, despite
worries that rules had changed following the Robert Gaines-Cooper decision.
Special commissioners had decided that Gaines-Cooper was domiciled in
England, and therefore came under the UK’s tax jurisdiction, despite his claims
that he spent less than 91 days in the UK.
HMRC has stated that, based on a ‘wide range of evidence’ Gaines-Cooper had
been continuously resident in the UK, and therefore the 91 day rule did not
apply to him.
‘Some commentators have suggested that the decision in Gaines-Cooper means
that HMRC has changed the basis on which it calculates the 91 day test. This is
incorrect,’ stated HMRC.
‘Where an individual has lived in the UK, the question of whether he has left
the UK has to be decided first.’
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