Welcome attack on the ‘Monaco Millionaires’

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It's good to see the UK making moves to change some of its tax rules for the wealthy onto a more realistic basis. Late last week came news that the Revenue had won a notable case against one of the so called 'Monaco Millionaires' who live in tax havens but work in the UK up to three days a week. This has been possible because until now the Revenue have disregarded days of arrival and departure when counting the number of days a person spends in the UK when seeking to establish whether they are resident here or not. This was fine in the days of steamships when the rules where established but was quite absurd when people were flying in on Monday morning and staying until Wednesday evening and claiming for tax purposes that this was just one day. Now the Revenue have won a ruling to say that two nights in the UK means two days here. Personally I'd have gone a stage further and would have argued that any presence here in a day would be enough to count. I hope that will follow in due course.

The relevance of this is that a person who spends more than 90 days a year in the UK on average over a period of more than three years is resident here. This change in the rules makes it harder for people to be considered non-resident here when they actually are in the UK for much of the year but seek to pay no tax.

The change in the ruling will, of course strike most people as plain straight-forward common sense. But Accountancy Age and the Times report that Mike Warburton of Grant Thornton is calling this move "moving the goalposts and changing the rules by the back door. There are going to be a lot of people who are significantly shaken by this decision".

There are times when you wonder whether some members of the profession should not just shut up in order to preserve any credibility they might have.


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