UK Tax Residence & Domicile Disputes

HMRC are increasing the number of tax enquiries and challenges they make in relation to both Tax Residence, and to Domicile status.  They have an expert unit at their Centre for Non Residents and now also have specialists in many other teams as well.  In recent years the taxman has been very successful in the tax courts in these areas: where often substantial sums can be at stake.

Many individuals and businesses believe they have left the UK, and its tax net.  But the law is complex and confusing, and it is easy to make mistakes that allow HMRC to argue that they are still UK Tax Resident.  And often the taxman misunderstands the facts or the law and wrongly persists in trying to charge UK tax. A challenge to the Tax Residence position of you or your business causes uncertainty and can be very disruptive.  And if the taxman wins the argument, it can be very expensive  in tax, interest and penalties.

The rules for individuals who are non-domiciled in the UK are also very complex, as are the criteria for defining the remittance of income and capital.  Also, from 6 April 2017, anyone who has been UK resident for 15 out of the preceding 20 years will be treated as if they had a British domicile for UK tax purposes.  And anyone who originally had a UK domicile but left Great Britain and acquired a foreign domicile, will also be treated as British domiciled if they ever return to the UK and become tax resident here again. We can therefore expect a large increase in the number of cases where HMRC investigate people's tax residence status: in an attempt to get them treated as UK domiciled too. 

These areas have proved to be fertile hunting grounds for the taxman in recent years; and will be especially important for individuals considering the various Offshore Disclosure Facilities.

Lynam Tax partners have successfully represented individuals, trusts and companies in recent years in demonstrating to HM Revenue & Customs’ Centre for Non Residents experts that those clients were non-resident in the UK for Income Tax, Corporation Tax and Capital Gains Tax purposes.  This is a complex and constantly evolving area of tax law where our tax experts can add tremendous value. 

How can Lynam Tax Experts help me?​
Lynam Tax enquiry experts have also helped many non-domiciled individuals save large sums by careful analysis of their affairs and the correct application of complex legal principles: which a large number of tax inspectors seem to misunderstand. Dealing with a Tax Residence enquiry or a domicile or remittance dispute requires specialist knowledge, deep experience and a proven methodology in getting investigations and disputes resolved.

If you need more information about this complex issue then phone today for a free, confidential, no obligation discussion.  Call:

Paul Lynam : 0845 643 9997  or

Andrew Nutbrown : 0771 877 8710