CIOT notes statutory tax residence test amendment
The Chartered Institute of Taxation (CIOT) notes that the Liberal Democrats have tabled an amendment to the Finance Bill for a comprehensive statutory tax residence test. The CIOT has been calling for a comprehensive statutory residence test for some time as a way of bringing certainty into the current residence situation, particularly in the light of recent cases.
The CIOT intends to discuss this issue with other relevant professional bodies in order to develop a consensual view on the appropriate test to adopt which does not adversely affect yield. It is likely that any sensible comprehensive test will take some time to devise but the CIOT believes that it would be possible to achieve a statutory residence test in next year’s Finance Bill.
John Barnett, Chairman of the CIOT’s Capital Gains Tax & Investment Income Sub-Committee, says: “We welcome the Liberal Democrats’ contribution to this debate as it is a very important issue that needs to be discussed. While the Government has stated that it does not wish to make any more changes to the non-domicile rules, the CIOT feels that a statutory residence test would bring certainty to this complex area. If done with sufficient consultation it need not result in unexpected or adverse consequences. And it will be popular with the business community because it will avoid the current ambiguities that are not helpful either to HM Revenue & Customs or to taxpayers.”
– ENDS –
For press information contact Simon Goldie on 020 7245 4122 (direct line), 07879 497316 (mobile). Email sgoldie@ciot.org.uk
Notes to editors
To read the amendment please click on this link –
http://www.publications.parliament.uk/pa/cm200708/cmbills/089/amend/pbc0892205m.152-156.html
-01.png){kind=spacer}