Government U-turn on Expat Travel Rules
Government u-turn on expat travel rules will make the lifestyle untenable for many
The change to the rules over how many days expats can spend in the UK will have a dramatic impact on some expats tax status, warns Wilkins Kennedy the accountancy firm.
Changes announced in the Pre-Budget statement mean that from April 6th 2008 the day of arrival of an expat into the UK and the day of departure of that expat out of the UK will now count towards the 90 day limit that an expat can spend in the UK.
This reverses Government long-standing position confirmed on October 8 of not counting travelling days and in booklet IR20 Residents & Non-residents. (http://www.pm.gov.uk/output/Page13445.asp).
If the expat breaks the 90 day rule they become UK resident and fall under UK tax regime.
Explains Peter Goodman, Head of Tax, of Wilkins Kennedy: “Many expats make frequent short trips to the UK for meetings or to visit relatives so this change will see an increasing number becoming UK tax resident.”
“For either personal, business or tax reasons it is going to make the expat life less tenable for many.”
“Increasing global mobility has focussed the Government’s attention on those who make regular visits to the UK. This announcement follows on from the Gaines Cooper case last year and will bring significant number of expats into the UK tax net.”
“On the one hand the Government says it wants to continue to attract non-domiciles to the UK and then on the other hand it tightens the rules on expats.”
ENDS.
Press enquiries:
Peter Goodman
Head of Tax
Wilkins Kennedy
Tel: 020 7493 1877
Nick Mattison or Jane Lougher
Mattison Public Relations
Tel: 020 7645 3636
