news - consultation on statutory residence test
As many of our clients with international affairs will be well aware, there is currently very little in the way of legislation on the subject of UK tax residence with rulings being made soley on case law and HMRC interpretation. This lack of clarity has made it impossible to plan efficiently as with cases going through the court of appeal the goalposts set by case law are constantly changing.
At the request of the institutes, HMRC has released a consultation paper on a Statutory Residence test. The criteria are in many cases more harsh than the guidance implemented at present, particularly on those leaving the UK for reasons other than full time employment abroad. However the certainty that a statutory test would bring can only be welcomed.
In brief, the test will divide into three parts :
• A test to be considered conclusively non UK resident based on days spent in the UK . This will give different criteria to those who have not been UK resident in the past three years (less than 45 days in the UK), those who were resident in at least one of the last three years (less than 10 days in the UK) and those who have left the UK for full time employment abroad (less than 90 days in the UK).
• A test to be considered conclusively UK resident (more than 183 days in the UK, or sole home in the UK if not conclusively non-resident under the first test)
• A test for anyone who is not caught by either of the above tests . This will look at days spent in the UK in conjunction with connecting factors such as family, accommodation, presence in the UK in prior years and time spent in the UK in comparison to other countries.
This is the most fundamental change in tax policy on residence for 100 years and will affect many of our clients. Whilst this is at present only a consultation document, any client who is concerned about their position should contact paulette@tax.uk.com . We will of course keep you updated with developments via our website and newsletter.
news
5 July Consultation paper on introducing a statutory residence test
2 July New consultation paper on non-domicile tax
1 June Kings Lynn office opens
6 May office refurbishment in Cambridge is now broadly complete. Sorry to clients for any disruption
28 March We are pleased to announce the opening of our new office in SBD Sydney Australia.
15 February We are refurbishing our offices starting February 21. We have carefully planned this to ensure the minimum disruption to our clients. The work will take 3 weeks, please accept our apologies for any inconvenience.
18 January 2011 Advice to clients of accountancy firms under investigation.
22 December 2010 - Wishing you a Wonderful Christmas and a Happy New Year see our Christmas Card
21 December 2010 -Christmas closing. We will be closed over the holiday after Christmas Eve 24 December 2010 & we will reopen on Tuesday 4 January 2011 our normal working hours 9am-5:30pm.
9 December 2010- HMRC publish new 2010/11 pension limits.
19 October 2010- HMRC publish new rules for restriction of pension relief.
1 September 2010 - Chartered Secretary, Trina Hill joins the time to offer an enhanced Company Secretarial offering.
12 July 2010 - EIS, still enough time to reduce capital gains taxed at 40% before April 2008 to 28% despite changes in the budget.
22 June 2010- Our Emergency Budget Newsletter is now live.
14 June 2010 - HMRC challenges resident status of frequent visitors.
1 February 2010 - Our in-house Solicitor, Liz Hooley, is appointed head of the private client deparment in the firm.
1 January 2010 - IFA, David Taine, joins the team at the Cambridge office to provide financial advice.
our services
We are a multi-disciplinary team with head offices in Cambridge - including tax consultants, accountants, solicitor etc.
Special terms of business apply to any work which is investments work within the meaning of the UK legislation. All our investment regulated work is dealt with through our specialist company AWA (Financial Planning) Ltd
Before we can give you any regulated advice we will need you to go through a full factfinder and to sign a terms of business with the regulated company.
privacy
In general commercial terms information provided to us would normally be treated as confidential.
Data we collect is managed under the data protection act.
Information we receive is regulated under the money-laundering regulations.
Please see the detail pages for further information
money laundering rules
Before you contact any professional advisor you should be aware that all are required to make a disclosure to the authorities if they have a reasonable suspicion that you have been guilty of laundering the profits of crime.
Before we can give any advice we need to identity you - and so require proof of identity.
Full details see our Money Laundering page .