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Special EU & EURO Warning – December 14, 2011Offshore Jurisdiction Comparison 
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Executive Summary – The UK has ruled that living abroad and spending 91 days or less in the UK is not enough to be free of UK taxes. They are saying that one must cut and sever their ties with the UK as well. HM Revenue and Customs made such a ruling against a businessman living in the Seychelles since 1976. The ruling was appealed and the Court of Appeal upheld the ruling by HM Revenue and Customes. The fellow that they ruled against still had a mansion in the UK and the Revenue people said it was still his principal residence even though he spent less than 91 days a year there. They ruled the fellow to still have ties with the UK and be a resident thus eligible to pay taxes and they hit him with a 30 million pound tax bill.
The department of Revenue can look back six years to collect taxes. This can affect many of the six million Brits living abroad as tax exiles. The department of Revenue can use facts like this to determine tax liability: They will look at the time spent in the UK, the regularity of UK visits, if the UK is the main centre of the persons economic activity and business ties, if there are family connections such as children going to boarding school, if the person is a member of a sporting club, and if the person uses UK credit cards, banks and even mobile phones from the UK. Looks like the UK has decided to tax all their citizens even if the live abroad just like the USA. I predict there are going to be thousands of UK citizens renouncing their citizenships and cutting all ties with the UK.
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*Offshore Legal Associates Law Firm.We have no legal ties or associations with any other law firm or corporation with similar or like sounding names anywhere and should not be so confused with any other entity having a similar or like sounding name.
