In the case of Yates V HM Revenue & Customs, the taxpayer Ms Yates appealed against the decision that she was UK resident from the tax years 2003/04 to 2006/07.

Ms Yates claimed she was resident in Spain following her decision to move there in 2000 predominantly for health reasons. During this time her husband remained in the UK. In the period 2003/04 to 2006/07 Ms Yates made sizeable share disposals amounting to over £3 million which HM Revenue & Customs deemed to be taxable in the UK.

The first tier tribunal understood that Mrs Yates had moved abroad due to her health problems and that she had spent less than 180 days in the UK in each of the years. However, it was decided that Ms Yates had not made a sufficient break from the UK in order to be no longer deemed resident or ordinarily resident and hence her appeal was dismissed.

The tribunal cited a number of reasons as to why there was a insufficient breaking of ties, such as, when she returned to the UK she stayed with her husband in their marital home, she still received disability living allowance from the Department for Work and Pensions and that correspondence was still being sent to the marital home in the UK.

This is an interesting case following on from that of Mr Gains-Cooper and Eaves & Co would be glad to help with any residency advice that you require.