Contact

News & Insights

Court of Appeal’s Expat Tax Ruling

The individual concerned had initially been successful in challenging HMRC’s demand that he provide them with full disclosure of his financial assets. He had argued that as he no longer lived in the UK, he no longer fell within the jurisdiction of the HMRC.

However, HMRC demonstrated to the Court of Appeal that the man met the ‘sufficient connection’ test as he had previously resided and paid tax in the UK. This was supported by a separate Serious Fraud Office action in relation to the expat’s finances.

Conclusions

The case clearly indicates that the full and frank disclosure of cross-border assets to all relevant jurisdictions should be considered an expat financial planning priority for all cross-border individuals – a picture which is further supported by the advent of the Common Reporting Standard as well the new Crime (Overseas Production Orders) Act 2019.

As such, all but the most seasoned and hands-on of individuals should seek specialist wealth planning advice in regard to the extra-territorial effects of their international assets.

Lord Justice Patten noted in the court judgment that there was strong public interest in ensuring that HMRC is able to use the sufficient connection test to pursue the potential tax liability of expats.

Expat Financial Planning Services with Blacktower FM

Blacktower FM works to assist clients in protecting, growing and structuring their wealth in a way that makes the most of their cross-border opportunities and obligations.

For more information about how we may be able to help you achieve your financial and retirement goals, including tax planning services for expats, contact us today.

*Jimenez, R. (On the Application of) v The First Tier Tribunal (Tax Chamber) [2019] EWCA Civ 51, http://www.bailii.org/ew/cases/EWCA/Civ/2019/51.html (Accessed 17-05-19)

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Could Brexit be Guy Fawkes in disguise?

On 3rd of November, the High Court ruled that Theresa May’s plan to trigger Article 50 early next year without consulting Parliament would not be allowed.  This is a massive blow to Theresa May who had intended to use royal prerogative to move ahead without consulting parliament.

Read More

Will your income be cut by the new dividend tax?

Blacktower Financial Management TaxMany ex-pats are still suffering from the cuts in income that have taken place due to the very low interest rates they continue to endure on their savings.

Well brace yourselves for more!  Any of you who rely on dividends from shareholdings to supplement your income are about to see a whole new look to the tax regime associated with them.

Dividends are annual cash payments made to holders of certain shares, they provide a vital source of income to many pensioners who rely on savings in retirement. The way dividends are to be taxed is to change from April 2016 and will see basic-rate taxpayers subject to a new levy of up to 7.5 per cent.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: