Pilot ruled as still resident in UK for tax purposes

A PILOT who left the UK to set up home in South Africa has lost a tribunal case in which he claimed he was not a UK resident for tax purposes.

The tribunal ruled that Lyle Grace’s conduct failed to sufficiently demonstrate he made a distinct break from the UK. Grace claimed he was not a UK resident as his main home was in South Africa, where he moved to in 1997. But the commercial airline owns a house near Gatwick, where he stays for short periods after piloting flights.

The tribunal said his employment with a British airline, the frequency of his visits and his house in the UK were all significant factors in drawing their conclusions.

Patricia Mock, a director in the private clients practice at Deloitte, said: “The Grace case is the latest in a string of claims for non-UK residence which have been decided in favour of HM Revenue & Customs.”

The cases demonstrate the “increasing scrutiny paid by HMRC” when considering tax affairs of people who have ceased to be UK resident.


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