Recent Projects

Statutory Residence Test

 

After years of dependence upon case law, the law on tax residence has moved on.

 

The Statutory Residence Test is now in force having been introduced for tax years 2013/14 onwards.

 

In a recent project, we were able to use the new rules to establish that an individual was not resident in the UK during one particular tax year when they were outside of the UK for most of the year.  This meant a significant tax saving for the individual (who was of Asian descent).

 

We were able to utilise the First Automatic Overseas Test, which states that you are automatically treated as non-resident for a year if you were resident in the UK for 1 or more of the previous 3 tax years and spend fewer than 16 days in the UK in the tax year.  Previously, residence was determined by case law and a one year absence in these circumstances may not have been sufficient to establish non-residence.  The new rules therefore can provide further opportunities for taxpayers, as well as some potential drawbacks for others.

 

In the case above, we were able to provide a significant tax saving by using the rules to prove non-residence for the year.  As ever, taking specific advice is recommended and we would be delighted to hear from you if you have any queries over these rules and how they may affect you. 

 


 

At Eaves and Co. we pride ourselves on the diversity of our experience and specialist services.  Below are details of a few of our recent projects:-

Private Client

HMRC Enquiries, Inheritance Tax Planning, Voluntary Disclosures to HMRC, Liechtenstein Disclosure Facility, CGT and Second Homes, Entrepreneurs Relief.

Business

R & D Tax Credits, Key Employee Share Option Schemes, HMRC Enquiries, Capital Allowances claims, MBO, Re-organisation and Deal Structure, Double Tax Treaties.

Company Restructuring

The client was required to reduce his shareholding in a company as part of the arrangement for a separate sale...

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Pension’s Property Acquisition
The owner of a trading company also owned the property from which the company traded from...

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