Tax & Accounting News

Tax residency fight goes to Supreme Court

24/08/2010

A wealthy British expat who is in dispute with HM Revenue and Customs (HMRC) over his tax residency status, has won the right to appeal to the Supreme Court, in a move which it is hoped may lead to greater clarity for others in his position.

Seychelles-based multimillionaire Robert Gaines-Cooper is being pursued for tax dating back to 1982, when he left the UK to live abroad and has since not exceeded the limit of spending 90 days in the UK per year.

However, HMRC has recently taken the line that the time limit is not definitive, and it is more important for the individual to show that they have really cut their ties with the country. In the case of Mr Gaines-Cooper, HMRC has argued that, since he maintains a home in Henley-on-Thames, where his wife and son still live and where he has a collection of classic Rolls-Royces, he has not truly ‘left’ the UK.

In February, the Appeal Court ruled against Mr Gaines-Cooper, but he has now been allowed to take his case further. He told the Daily Telegraph that he was continuing his fight on behalf of other non-doms in the same position, in an effort to clarify HMRC’s residency criteria once and for all.

We will keep our clients up to date with any further developments.