This case came to us following a recommendation. The client was dual resident between the UK and another European country and HMRC were seeking to charge his non-UK income to UK tax on the basis that he was tax resident in the UK. This was a complex matter involving Double Tax Treaty between the two countries and various tests of tax residence. Our team of tax specialists took on the case and were soon able to conclude the matter in our client’s favour. In summary, in light of the Double Taxation Treaty the client had made a number of trips to the UK for reasons that were outside the scope of tax residence and had comparatively small economic ties to the UK. After detailed discussions, HMRC accepted that according to the Double Tax Treaty our client was “treaty non resident” in the UK and hence the taxing rights were retained by the other country. Accordingly, non-UK income was not taxed in the UK. We are grateful to the tax inspector and the technical team at HMRC for taking a pragmatic approach on this case and bringing the matter to a swift conclusion.

Our analysis: Tax residence and application of Double Taxation Agreements can be a complex area. There are a number of individuals that need to travel to the UK for reasons other than becoming tax resident. However from HMRC’s perspective, the facts need to be presented in a manner which is in line with the relevant legislation and the Double Tax Treaties. Seeking specialist advice at the outset can save time and money.