Expat millionaire tax ruling to affect high-earners

Britain's high earners who have retired abroad are still likely to be subjected to the UK's punishing tax rates, following a key ruling this week. The Supreme Court ruled in favour of HM Revenue & Customs (HMRC) in its case against retired millionaire, Robert Gaines-Cooper, who spends almost all of his time living in the Seychelles and has done so for the last 30 years. The court agreed with HMRC's claim, started in 2006, that Mr Gaines-Cooper's close ties to the UK - including his large estate in Henley-on-Thames and his regular trips to Ascot - meant that he was both resident and domiciled in his home country. Mr Gaines-Cooper is now facing a significant backdated tax bill, on the back of the ruling. His solicitor, Peter Vains, the head of tax at the London office of Squire, Sanders & Dempsey, said the case was "harsh" and that it should be a warning to Britain's expat millionaires. "He will pay what he is due," said Mr Vains. "It was never about tax but about what was right and wrong. He satisfied all of the guideline terms but the revenue and courts have decided that some additional terms need to be implied in the reading."The Lord Justices agreed that HMRC's position on how to achieve non-residency needed to be "much clearer" - they decided that in order to qualify for non-residency status, people would have to leave the UK permanently, indefinitely or for full-time employment, surrendering "usual residence" in the UK.

http://www.50percenttax.co.uk/index/2011/10/20/expat-millionaire-tax-ruling-to-affect-high-earners.html