The press, over recent weeks and months, has contained unprecedented comment about the tax residence and domicile of several public figures as well as speculation about a possible exodus of talent from the UK as the higher tax rates and less friendly pension deduction and domicile provisions start to bite in the UK.
In the background, we have seen in the courts a string of cases brought (successfully in most cases) by HMRC on the meaning of residence and ordinary residence in the UK.
Please use this link (www.law-now.com/law-now/2010/residencemar2010.htm) to read an article CMS has produced to explain the impact of various of the cases and to show the way forward.
Broadly, it remains possible to limit one's UK tax exposure on arrival in the UK for work, particularly if split service contracts are used for UK and non-UK duties.
It is also possible to escape the UK tax net as an emigrant if you go abroad for full time work. This allows you to retain family, social and other ties with the UK and to visit the UK regularly.
On the other hand, if you are retiring abroad or making a lifestyle choice then the situation is tougher – a much more distinct break from the UK is required and care needs to be taken as to the regularity and length of visits.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 18/03/2010.
