Gaines-Cooper loses domicile tax appeal

Robert Gaines-Cooper has lost his appeal against a decision by the tax courts
over his status as domiciled in the Seychelles and not in the UK.

The Special Commissioners found that Gaines-Cooper had not given up his
status as a UK domicile, as he continued to have links with the UK, including
retaining various properties.

However, advisers were disappointed that the case dealt with Gaines-Cooepr’s
domicile status and did not focus on the time he spent residing in the UK, which
had been a key part of the earlier case.

‘The decision is disappointing because it failed to clarify further how the
law now determines the residence status of those who spend limited time in the
UK as this aspect was not covered in the judgment,’ said David Kilshaw, head of
private client advisory.

Grant Thornton tax partner Mike Warburton said the decision was good for
UK-resident non-domiciles, as it may help to prove that they were not domiciled
in the UK.

‘It’s good news in that it shows how difficult it is to shake off your
domicile – if you come here from abroad then it’s not easy to prove you’ve
changed you domicile status,’ he added.

Further reading:

Seychelles entrepreneur’s heart
‘remained in England’

Monaco millionaires face
crackdown