Residence has always been at the heart of expatriate tax planning. When a review of residence and domicile was announced in 2002, many were concerned that serious changes would follow. Now, the Chancellor has finally announced that the review is complete.

The main conclusion is the introduction of changes to the residence rules so that days of arrival at and departure from the UK will count toward establishing residence. This will have a huge impact on those living abroad-and means that, from April 2008, expatriates making frequent trips back to the UK will have to carefully plan to ensure their non-resident status is not jeopardized. More details are expected so it remains to be seen if any changes to the well-known 91-day-average rule will apply.

All levels and basis of, and relief from, taxation are subject to changes.

This entry was posted on Thursday, January 10th, 2008 at 8:21 pm and is filed under Testimonies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.