Challenging the changes in the way residence and domicile status will be determined for U.K. tax purposes

Robert Gaines-Cooper vs HMRC

Robert Gaines-Cooper is appealing against a number of assessments which were issued by The Commissioners of Her Majesty’s Revenue and Customs. The appeals concern the liability of the Appellant for income tax under Case VI of Schedule D. The basis of the appeal concerns the issues of domicile, residence and ordinary residence of Robert Gaines Cooper. He has asserted and provided documented evidence in the case that he abandoned his domicile of origin in England and acquired a domicile of choice in the Seychelles well before 6 April 1992. He has retained that domicile of choice ever since.

HMRC has changed its policy in regard to the days of entry and departure used to calculate whether an individual has spent an average of more than 90 days in the UK during four consecutive tax years — or more than 183 days during any single year. Anyone who exceeds either limit is liable to British income tax.

Now the days of entry and departure disregard rule has been changed by the Special Commissioners and many people will be stripped of their non-resident status and subject to assessments by HMRC even though they have established a domicile of choice and residency outside of the United Kingdom. It should be noted that this recent change has occurred and effects historical events over the last 13 years.

This Blog presents the key issues and findings in the matter including the sworn testimony of individuals that reject the residency claims of the HMRC. Additionally the facts are intended to support the appeal of this ruling and to prevent these changes from becoming a formal legal precedent if agreed to by a High court judge. We will update this Blog as more information becomes available. However, we encourage you to contact your tax accountancy to best determine the impact this ruling may have on your tax liabilities.