Contact: Lisa Spearman; Mercer & Hole (London, England)
If any of your clients have a home or work in the UK or visit frequently they could be affected as of 6 April 2013. An individual's tax liability in the UK is based on tax residence and that is not necessarily as simple as where you live. Up until now the rules have been set by the courts and guidance from HMRC. From April there will be a new test set out in law and there are some important differences from the old system particularly when it comes to working. If your clients have any links with the UK they may be affected and it is important to ensure that the position is checked carefully to avoid any surprises.
The new test has three parts to determine who is resident for UK tax purposes and the framework of the test is set out in the Mercer & Hole Insight. There are new definitions for work and home and more occasions on which you have to keep a record of your activities. On the positive side the test is designed to be simple and definite and we can use our expertise to help you establish your client's position and then arrange their affairs in the best way possible.
At this stage the legislation is still draft but is expected to be enacted in July with effect from 6 April 2013. We would be very happy to have an initial discussion with you to consider the impact of the changes for your clients and whether there are any wider tax implications you need to consider.
Download a .pdf of Mercer & Hole's Insight into the Statutory Residence Test.
About Lisa Spearman:
Lisa has over 25 years experience of advising overseas individuals living and working in the UK. Lisa is an acknowledged expert on residence and domicile issues and leads Mercer & Hole's specialist team that focuses on non UK domiciled clients. She is Chairman of the ICAEW Tax Faculty's, Private Client Committee and within that leads the working party on non domicile and residence matters. Lisa is also a member of the ICAEW Tax Faculty technical committee and through Mercer & Hole's TIAG (The International Accounting Group) alliance is co-chair of their TAG Tax Specialty Group. Lisa is a regular contributor to TAXline Tax Planning and has had chapters published on both tax residence and inheritance tax.
Watch an interview of Lisa Spearman discussing the Statutory Residence Test.
Please contact Lisa Spearman on +44 207 236 2601 or lisaspearman@mercerhole.co.uk.
