News
Non-residents tax rules tightened by HMRC
15 June, 2009
The HMRC has tightened the tax rules for non-residents who may now have to pay more tax.
The more affluent British resident who lives offshore for part of the year and presently enjoys the tax-exempt non-resident status will be affected by the new Revenue guidance on qualifying for a non-resident status. The non-resident status has previously be granted to anyone who after moving abroad spends no more than ninety days per annum in the UK and the non-resident has not had to pay any UK income or capital gains tax on overseas income or gains.
The HMRC has not advised that the non-residents’ lifestyle will be examined to see if they retain strong association with Britain in assessing whether they should be exempt from UK tax.
While the HMRC has not specified the factors it will use in assessing non-residents lifestyles, some lawyers feel that holding UK property or carrying out work on a regular basis in the UK as well as retaining membership to societies or clubs could be used.