Preparing for the Possibility of a Domicile Enquiry
Video below is an exploration who might be vulnerable to an HMRC enquiry on domicile and how best to deal with such enquiries.
The types of non-doms most vulnerable to scrutiny:
- “Taxpayers with a weak argument that they do not have a UK domicile of choice, but also those with a weak non-UK domicile of origin.”
Non-doms can protect themselves:
- “It’s important to keep an up to date, running chronology of key life events and examine the impact of those life events.”
- “Note the potential for HMRC to go back 20 years from the date of any chargeable transfer if no Inheritance Tax account has been delivered or a chargeable asset had been omitted.”
- “Make sure you know your client before they embark on an interview.”
Finally, information requests under Schedule 36 to the Finance Act 2008:
- “Under Schedule 36, HMRC can only ask for information that is reasonably required to check the taxpayer’s tax position.”
Navigating Domicile Enquiries: Recent Case Review
In recent months, the First-tier Tax Tribunal has presided over 3 headline grabbing domicile cases which, whilst offering little precedential value, set out some useful commentary on the multi factorial approach taken by HMRC and ultimately the tribunal in determining an individual’s domicile status. This note reviews the decisions made in Shah v HMRC  UK FTT 539 (TC), Strachan v HMRC  UKFTT 00617 (TC) and Coller v HMRC  UKFTT 212 (TC).
Mini Umbrella Companies (“MUCs”) Success at Tribunal (Labour Supply; Kittel fraud; Fini fraud)
Iain MacWhannell, instructing David Bedenham, successfully represented an employment intermediary in an appeal against a denial of input tax and £15 million VAT assessment.
The End is Nigh for the Non-Dom Regime
Published in ThoughtLeaders4 Private Client Magazine, Helen McGhee expert analysis of the current state of non-dom tax regime and it's future.
HMRC Makes Changes to COP9
On 14 June 2023, HMRC published a substantially rewritten Code of Practice 9 (“COP9”). Helen McGhee and Megan Durnford set out the key changes implemented as a result of this publication.
Pandora Papers: HMRC issues nudge letters
The Pandora Papers leak of almost 12m documents back in 2021 purportedly exposed the secret accounts and dealings (including potential tax evasion/ avoidance and money laundering) of 35 world leaders (including the late HM Elizabeth II), as well as many politicians and billionaires. The data was obtained by the International Consortium of Investigative Journalists in Washington DC and led to one of the biggest ever global financial investigations.