INLAND REVENUE CASE
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INLAND REVENUE CASE
Not sure how much this affects most Pilots but there was a test case in the past week or so regarding tax residency
Shepherd v HMRC
Mr Shepherd, an airline pilot, claimed he was not ordinarily resident in
the UK in 1999/2000; he said he had become resident in Cyprus in October
1998. The Special Commissioner’s conclusion sums up the relevant facts: “I
conclude that the question whether the appellant was resident and
ordinarily resident in the United Kingdom in the year 1999/2000 is a
question of degree. Taking into consideration all the evidence before me,
and the facts I have found, especially having regard to the appellant’s
past and present habits of life, the regularity and length of his visits
here, his ties with this country, and the somewhat temporary nature of his
attachments abroad, I have come to the conclusion that at least until 5
April 2000 he continued to be resident and ordinarily resident in the
United Kingdom. He dwelt permanently here and this was where he had his
settled or usual abode and so he was resident here. He resided here
continuously as part of his everyday life; his residence here was part of
the regular and habitual pattern of his mode of life and it persisted
despite temporary voluntary absences to fly in the course of his
employment, or to go to Cyprus, or to go sailing, or to visit Europe; his
residence here also had a settled purpose and so I also conclude that the
appellant was ordinarily resident here.” In any case Mr Shepherd was
taxable in the UK under section 334, ICTA 1988, because he had left the
United Kingdom for the purpose only of occasional residence abroad. The
High Court has now held that the Special Commissioner's decision should
not be overturned.
If anyone is relying on residency to avoid UK tax, you might want to check with a tax professional (which I'm not!) to see if this affects you
Shepherd v HMRC
Mr Shepherd, an airline pilot, claimed he was not ordinarily resident in
the UK in 1999/2000; he said he had become resident in Cyprus in October
1998. The Special Commissioner’s conclusion sums up the relevant facts: “I
conclude that the question whether the appellant was resident and
ordinarily resident in the United Kingdom in the year 1999/2000 is a
question of degree. Taking into consideration all the evidence before me,
and the facts I have found, especially having regard to the appellant’s
past and present habits of life, the regularity and length of his visits
here, his ties with this country, and the somewhat temporary nature of his
attachments abroad, I have come to the conclusion that at least until 5
April 2000 he continued to be resident and ordinarily resident in the
United Kingdom. He dwelt permanently here and this was where he had his
settled or usual abode and so he was resident here. He resided here
continuously as part of his everyday life; his residence here was part of
the regular and habitual pattern of his mode of life and it persisted
despite temporary voluntary absences to fly in the course of his
employment, or to go to Cyprus, or to go sailing, or to visit Europe; his
residence here also had a settled purpose and so I also conclude that the
appellant was ordinarily resident here.” In any case Mr Shepherd was
taxable in the UK under section 334, ICTA 1988, because he had left the
United Kingdom for the purpose only of occasional residence abroad. The
High Court has now held that the Special Commissioner's decision should
not be overturned.
If anyone is relying on residency to avoid UK tax, you might want to check with a tax professional (which I'm not!) to see if this affects you
