Home and away

Although the 90-day rule is only laid down as Inland Revenue guidance rather than actual law, it has long been relied on when looking at tax residence. The recent case of Shepherd v HM Revenue and Customs however, has highlighted the dangers of doing so, especially for those with transient lifestyles.

Mr Shepherd was an airline pilot who moved to Cyprus and spent less than 91 days a year in the UK, but was deemed to be a UK resident and therefore subject to UK income tax.

This decision shows that if you want to shed your UK tax residence, you should very clearly set up home in your new country and work hard to reduce your UK ties. Simply spending less than 91 days in the UK may no longer be enough to keep the taxman at bay.

If you are unsure about your UK residence status, or you have any other related residence, domicile or tax enquiries, please contact:

Andrew Goldstone
Tel +44 (0)20 7440 7205
andrew.goldstone@mishcon.com