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 |
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