# 91 day tax rule



## MaidenScotland (Jun 6, 2009)

If you use the 91 day tax rule you may like to have a look at this link

Tax exiles under pressure after court ruling - Telegraph

Maiden


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## BabsM (May 24, 2008)

That's no surprise. Both Veronica and I have tried to explain that just living outside the UK for the required time is not sufficient. If people still retain property and a life (of sorts) in the UK then they may be deemed not to have severed the ties to the UK and therefore may still be liable for UK tax.


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## Veronica (Apr 5, 2008)

BabsM said:


> That's no surprise. Both Veronica and I have tried to explain that just living outside the UK for the required time is not sufficient. If people still retain property and a life (of sorts) in the UK then they may be deemed not to have severed the ties to the UK and therefore may still be liable for UK tax.


If the UK government starts to implement this law there will be a lot of expats who are trying to play both sides that will have some nasty shocks coming.
Many maintain an address in the UK to try take take advantage of going back to the UK for medical treatment etc while de-registering for tax to takeadvantage of the lower taxes here. 
If you keep a property in the UK and rent it out or whatever you do with then you should be willing to pay UK taxes. 
Having said that I think it will be the big cats the government will go after first as there is more in it for them but one day they will start to clamp down on everyone and then there will be a big day of reckoning to come.
My advice is anyone who is hovering on the fence between the UK and Cyprus (or any other country) should decide which side they are on while they still can to avoid big tax bills to come later.

Veronica


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## Elphaba (Jan 24, 2008)

To clarify, the recent Gaines-Cooper case is more to do with domicile than residency and the ruling will not affect the vast majority of British expats. As usual, the press like to scaremonger.

The vast majority of British Nationals are deemd to be UK domiciled, no matter where they live. This is a particularly strong concept in British law and is based on father's nationality and your place of birth in most cases. It is very hard to change domicile and in order to do so you have always had to sever all ties with the UK and take up another domicile of choice. The issue here relates to UK inheritance tax which is charged on the worldwide assets of UK domiciled people.

Mr Gaines-Cooper was claiming a change of domicile whilst retaining a property in the UK, his wife and child lived there, he has UK bank accounts etc and he visited regularly. In now way would that ever have been deemed a breaking of ties. 

Most British nationals do not claim a chnage of domicile, although ir may be inthe inerests of some who will never return to do so. In short, do not be panicked by this ruling as, unless you have significant assets you have no need to be concerned. The standard ruling of being treated as UK non-resident for tax purposes by spending no more than 90 days a year in the UK whilst income arises overseas is unchanged.

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## RonJeremy (Sep 17, 2009)

This is of no suprise at all, simply cut all your ties from your former country.

Capital Gains Tax & Inheritance Tax UK Advice Guide has some of the greatest manuals on offshore taxing, one of those books (I can't remember exactly which one) goes into the 91-day rule in detail, saying things like you may even want to cancel your bankaccount in your old country even if it's empty! 


@Elphaba: as far as I can tell this has nothing to do with domicile, he simply tried to achieve non-resident status which has nothing to do with changing your domicile.


Elphaba said:


> To clarify, the recent Gaines-Cooper case is more to do with domicile than residency and the ruling will not affect the vast majority of British expats. As usual, the press like to scaremonger.
> 
> The vast majority of British Nationals are deemd to be UK domiciled, no matter where they live. This is a particularly strong concept in British law and is based on father's nationality and your place of birth in most cases. It is very hard to change domicile and in order to do so you have always had to sever all ties with the UK and take up another domicile of choice. The issue here relates to UK inheritance tax which is charged on the worldwide assets of UK domiciled people.
> 
> ...


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## Elphaba (Jan 24, 2008)

I am familiar with the case and yes the main issue was eventually regarding domicile as well as residency.


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