D
Dave The Dude
Guest
The British Court of Appeal has handed down a landmark decision to Robert Gaines-Cooper on his residency status after he had appealed against a thirty million pound tax bill!
The very fact that Mr Cooper had complied with the 91 day residency (IR20) ever since 1976 made no difference to his domicile status nor according to the Revenue no difference to his residency for tax purposes.
One of the judges in the court of appeal stated "Revenue were fully entitled to look for a clean break". EG If Mr.Cooper had continuing connections with the UK then irrespective of his residency that individual would now be regarded as "Ordinary resident" for tax purposes.
In a related case a Robert Davies and a Michael James also failed under IR20 to claim non residency for the tax year 2001/2002 even though they were in full time residency in Belgium.
Don't consider yourself a nonresident just yet
Tax professionals think the result of these cases pose serious repercussions for others who consider themselves nonresident for tax purposes. They state that if you have any financial ties to the UK even a bank account or a UK based mobile phone and most certainly own property there; you will be liable to UK taxes.
In addition investments like PEPs ISAs introduced to alleviate the tax burden and encourage savings specifically for UK residents will confirm that you have not made a 'clean break'. Any UK based investments will confirm the same. So it's make your mind up time!
Do you want to live in Thailand and forget about the UK taxman?
Like most of you will probably say yes so here ate the steps you can take which I suggest as a program for peace of mind. You may balk at some of these but there is no easier softer way unless you want to return to the cold winters. If you own a property there sell it immediately and have the proceeds paid into your offshore Bank account. If you have a bank or Building Society account close them and, if you have not one already, open an offshore account. If you have a car taxed and insured there in your name, sell it.
If you have a UK personal pension and have not yet bought an annuity you can transfer it into a QROPS. The very least benefit of this will be your monthly payments will be tax free.
Any onshore investments you still have, including endowment policies, you must sell
It' hard to see why anyone would want to hold on to these anyway when you have such an array of Tax free offshore funds to choose from. Remember that most onshore investments are liable to hidden taxes to which offshore funds are not.
You may be thinking you need to keep a UK bank account open to pay direct debits there. Wise up, If you have direct debits from a UK bank then you for sure have not made a "clean break". It is one thing to be caught unaware by the UK taxman but now you know the repercussions of doing nothing it is your own fault if the taxman comes knocking.
Make your decision about where you permanently want to live. if you decide to live here full time don't expect sympathy from anyone. Most, despite the odd grip, love it here and ninety percent of people who visit would also love to live here.
LAST WORD - divest all you UK assets.
for further assistance contact
tremainedecourcy@yahoo.co.uk
THAT WHOLE EXTRACT WAS COPIED FROM LIFESTYLE MAGAZINE AND DON'T SHOOT ME, I'M ONLY THE PIANO PLAYER!
The very fact that Mr Cooper had complied with the 91 day residency (IR20) ever since 1976 made no difference to his domicile status nor according to the Revenue no difference to his residency for tax purposes.
One of the judges in the court of appeal stated "Revenue were fully entitled to look for a clean break". EG If Mr.Cooper had continuing connections with the UK then irrespective of his residency that individual would now be regarded as "Ordinary resident" for tax purposes.
In a related case a Robert Davies and a Michael James also failed under IR20 to claim non residency for the tax year 2001/2002 even though they were in full time residency in Belgium.
Don't consider yourself a nonresident just yet
Tax professionals think the result of these cases pose serious repercussions for others who consider themselves nonresident for tax purposes. They state that if you have any financial ties to the UK even a bank account or a UK based mobile phone and most certainly own property there; you will be liable to UK taxes.
In addition investments like PEPs ISAs introduced to alleviate the tax burden and encourage savings specifically for UK residents will confirm that you have not made a 'clean break'. Any UK based investments will confirm the same. So it's make your mind up time!
Do you want to live in Thailand and forget about the UK taxman?
Like most of you will probably say yes so here ate the steps you can take which I suggest as a program for peace of mind. You may balk at some of these but there is no easier softer way unless you want to return to the cold winters. If you own a property there sell it immediately and have the proceeds paid into your offshore Bank account. If you have a bank or Building Society account close them and, if you have not one already, open an offshore account. If you have a car taxed and insured there in your name, sell it.
If you have a UK personal pension and have not yet bought an annuity you can transfer it into a QROPS. The very least benefit of this will be your monthly payments will be tax free.
Any onshore investments you still have, including endowment policies, you must sell
It' hard to see why anyone would want to hold on to these anyway when you have such an array of Tax free offshore funds to choose from. Remember that most onshore investments are liable to hidden taxes to which offshore funds are not.
You may be thinking you need to keep a UK bank account open to pay direct debits there. Wise up, If you have direct debits from a UK bank then you for sure have not made a "clean break". It is one thing to be caught unaware by the UK taxman but now you know the repercussions of doing nothing it is your own fault if the taxman comes knocking.
Make your decision about where you permanently want to live. if you decide to live here full time don't expect sympathy from anyone. Most, despite the odd grip, love it here and ninety percent of people who visit would also love to live here.
LAST WORD - divest all you UK assets.
for further assistance contact
tremainedecourcy@yahoo.co.uk
THAT WHOLE EXTRACT WAS COPIED FROM LIFESTYLE MAGAZINE AND DON'T SHOOT ME, I'M ONLY THE PIANO PLAYER!