No escape for tax exiles?

The Court of Appeal has upheld the right of HM Revenue & Customs to tax a businessman, Robert Gaines-Cooper, who has lived in the Seychelles since 1976. The judges said that he had never been exempt from UK taxes as a non-resident citizen and now should pay a tax bill of £30m relating to the years from 1993-20004. Although he had abided by the rules to spend fewer than 91 days here, he had still not cut his ties with the UK.

Thousands of wealthy UK citizens living abroad as tax exiles may now find they have to pay UK taxes after all.

A key feature of the Revenue's old guidance on whether someone was resident in the UK for tax purposes - known as IR20 - was whether they spent, on average, fewer than 91 days here each year.

"If you read the old guidance at face value, as most of us did, and you spent less than 91 days here, you would have been treated as a tax exile," said Mike Warburton of accountants Grant Thornton, who was an expert witness in the case.

However, the three Appeal Court judges ruled that it had always been the case that any would-be tax exile, first had to show they had really left the country.

Any continuing connections would mean that he had not actually cut his ties with the UK and would thus not be able to avoid UK taxes.

The 91-day rule, they said, did not in fact establish non-residency, and was "important only to establish whether non-resident status, once acquired, has been lost".

Source: http://news.bbc.co.uk/1/hi/business/8519803.stm

HMRC increasingly target HNWIs

City law firm McGrigors has undertaken research showing that HMRC collected £373 million from investigations into wealthy taxpayers in the last financial year, a 21 per cent rise on the previous year and a 360 per cent increase over five years. HMRC established a specialist HNW unit in April 2009 to focus specifically in the field.

This news comes on the back of a failed attempt by UK-born businessman Robert Gaines-Cooper, to win a judicial review of a major dispute with the UK tax authorities. HMRC refused to accept he had really left the country when he moved to the Seychelles in 1976. The case further illustrates the risks run by tax exiles who nevertheless keep some links with their home nation.

Leeds Private Office hires two Partners

Leeds-based boutique adviser, The Private Office continues to grow its presence in the wealth management sector, with the appointment of two new Partners. Alistair Callander, who was previously with Deloitte and Credit Suisse, will provide family wealth planning advice with a particular focus on IHT and trusts issues. Joe O’Shea is an experienced and Chartered financial planner and joins from AWD Chase de Vere. See www.theprivateofficellp.com

Cripps’ Partners recognised as leading Private Client lawyers

Leadng regional law firm, Cripps Harries Hall LLP are proud to announce that two of their private client partners have been recognised as Leading Lawyers in this year’s Citywealth Leaders List.

Amanda Andrews, a partner in the Family Team and Simon Leney, a Partner in the Tax, Trusts and Probate Team have both been named as Prominent Figures within their respective areas of practice.

The Citywealth Leaders List is compiled through the recommendation of peers and clients. All individuals are put forward confidentially by private clients or by their peers in law firms, accountants and financial institutions and the rankings are the result of detailed research. Those listed are acknowledged to possess a sterling reputation for expertise in their field, first class client care and sophisticated services for wealthy families and individuals.

Myles McIntosh, Head of the Private Client Group at Cripps said “We are delighted that Amanda and Simon have been recognised as leaders in their fields reflecting the high standard of expertise and client care provided by Cripps Harries Hall. This reinforces the recent excellent rankings we have achieved in other independent publications highlighting the quality of our Private Client service”.

Source: Cripps Harries Hall LLP

Farrer & Co. appoint two new Partners

Leading Private Client law firm, Farrer & Co, has announced the appointment of two new Private Client Partners.

Rhoddy Voremberg will be joining from the Legal 500 recommended team at Wilsons, whilst Nick Dunnell joins from Speechly Bircham's highly-rated team.

Rhoddy advises on estate planning, all aspects of UK trusts, succession and taxation. He specializes in advising landowners on preserving their estates, family succession, heritage property, land development and other aspects of the diversification of estate businesses.

Nick specialises in onshore and offshore trusts and personal tax planning, including inheritance tax, capital gains tax and income tax. He advises trustees and individuals (particularly foreign domiciliaries).

Tentative recovery in recruitment sector

The Recruitment and Employment Confederation (REC) has reported seeing greater demand for staff from both employers and recruitment agencies. The REC’s director of external affairs, Tom Hadley, has noted a definite increase in demand for permanent staff although he warns that the situation is fragile. He believes that businesses are likely to be cautious about the number of new workers they take on and could prefer to create more flexible positions than permanent jobs. Last week the Office for National Statistics reported that the total number of UK unemployed had fallen to 2.46m by the end of November 2009.